NFTs took the crypto space over like a storm in 2021. The ‘Summer of Love’ from way back was at last replaced by the ‘NFT Summer’. Although NFTs aren’t as hot as back in 2021, they are still doing well. This Q1-22 saw an increase of 22% and 116 million NFT transactions.
So, we established that NFTs are still hot. Therefore, CoinGecko just published the March 2022 NFT survey report. They had a 23-question Twitter poll thread between March 30th and April 2nd, 2022. Anywhere between 394 and 874 people answered each question. You can see the questions and answers here. Let’s dig in and see what they came up with.
0/ Non-fungible token (#NFT) has taken the world by storm, generating over $21 billion in trading volume in 2021 (Grew over 63,6263% YOY!)
If you have experienced NFTs before, we invite you to join our polls below!
— CoinGecko (@coingecko) March 30, 2022
What Is Happening in the NFT Ecosystem?
We can see that Ethereum is still riding the waves in the first spot in the NFT ecosystem. To clarify, they do this very comfortably as well. Ethereum reigns supreme over all networks with a 46.3% market share. The Otherside sale by Yuga Labs showed this once more. With all the controversy that it caused.
Moreover, the next contender is a mix of other smaller NFT chains combined. They make it to a united effort of 26.4%. The next in line is Polygon with 13.8%. They beat Solana by a nose length. Solana comes in fourth with 13.5%. Here is a chart from the report:
However, there is an interesting fact that pops up. In CoinGecko’s Q1-22 full report, Ethereum had an 85% market share in NFTs. This is quite a stunning difference. At the NFT marketplaces, there’s also a similar dominance. Now it’s OpenSea that is the dominant platform.
With a convincing 58.7%, they have more than twice the market share over the next contender. This is a basket of combined other marketplaces with 27.5%. Solanart and Magic Eden are also near the bottom here, with just over 10% of a share in the market.
Therefore, it is interesting to see that LooksRare and X2Y2 are lagging far behind. Despite early success and lavish incentive programs. From the best of the rest, Crypto.com, Immutable X, and VEVE Official receive plenty of mentions.
The Hardware and Keeping Tabs
Here we look into what hardware you use during trading and minting. The report also checked how you stay updated and how you keep track of your NFT portfolio.
According to the ConiGecko report, most people use their PC to mint and trade. No less than 60.2% do this. A mobile option comes in at only 21.3%. A combination of PC and mobile is good for 18.5%. The reason for the PC’s popularity lies in the time sensitivity of minting and trading NFTs. Mobile wallets are not always up to this task in a timely way.
When keeping track of new NFT projects, Discord and Crypto Twitter are the places to be. 62.5% of NFT lovers get their daily cure there. Despite that these two places are fairly unorganized and information is all over the place.
Then, NFT marketplaces come in as a good second. But they score well below half of Discord and Twitter’s achievements. Just 27.6%. Aggregators like Rarity Tools are available, but they don’t seem to deliver the goods.
For keeping track of your NFT portfolio, the NFT marketplaces take the first spot. They do this with a convincing 52.8%. Excel sheets or other homemade solutions come in the second spot with 22.6%. That is interesting because there are portfolio managers that you can use. However, they only score 17% and come in the third spot.
NFT Aggregators and How to Capitalize Your NFTs
According to the ConiGecko report, 62.9% of the participants in this poll have never heard of NFT aggregators. For fractionalized NFTs, this number is even higher and sits at 66.5%. That this is surprising is an understatement. Is there enough exposure to these products? Or is it that popular aggregators like Genie or Gem only cover Ethereum-based marketplaces?
The TVL of fractionalized NFTs doubled since July 2021. It now stands at $186 million. However, in the poll, only 18.6% own a fractionalized NFT. It appears that both areas are in a beginners phase. This could be the right moment to get involved.
NFT lending seems to be a more popular option. Over 52% of poll participants find this of interest. NFTi and Drops seem to be the leading platforms in this young and new field. Their TVL is still under $150 million. Nonetheless, there certainly is interest in this field.
Main Interest Towards NFTs
Most NFT survey report participants, 38.5%, want to know the floor price when trading. This makes sense since the majority of NFT buyers want to flip an NFT. The floor price also tells you if you can afford it and how the price may develop.
Therefore, the rarity of an NFT seems to sit at a logical second place, with 29.7%. Also, influencers and hype still play a big role, with 18.2%. Still, 13.6% mention other attributes. But to clarify, the report doesn’t have any information about this.
To hodl an NFT instead of flipping it, the current and future utility are of importance. Secret Network has some great NFTs, where for instance, only the owner has access to the NFT. A great sample of why you would want to hodl such an NFT. For example, movie sections that the director edited out. In general, the trend tends to lean towards an added function, rather than just being an ‘on-chain JPEG’.
Strong NFT communities get 23% approval. These communities do indeed make the NFT space special.
Conclusion
This NFT survey report gave us some interesting information and results. For trading and minting NFTs, the pc wins hands down as the preferred hardware. On the other hand, Discord and Crypto Twitter are popular choices to find out about new NFT projects.
Then, NFT marketplaces take first spot to keep track of your portfolio. It’s the floor price that attracts most interest when buying an NFT. It’s nice to see that people take an interest in current and future use cases of NFTs. This can be a decisive factor to hodl an NFT instead of flipping it.
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