NFTs were more than a buzzword in 2022. Celebrities, artists, and sports stars all rushed to get a piece of the trending cake. As of August 2021, the trading volume of NFTs climbed above $50 billion. Still, many assumed the growth of digital art would be short-lived. However, that has been far from the case. NFTs are still part of our world and will remain so for the long term.
However, many people have mixed feelings about NFTs. CoinGecko, a crypto information platform, recently carried out a survey report on NFTs, which it released in March. NFT CoinGecko’s Report, conducted on Twitter, examined the demographics of NFT owners and their behavior. It also looked into their motivation, inclinations, interests, knowledge, and perceptions about NFTs.
Therefore, in this article, we’ll give you a summary of the NFT CoinGecko’s Report.
Respondent’s Demographic
About 871 people responded to the poll:
- 72% are NFT owners.
- More than half of these people own more than five NFTs. The Twitter poll featured respondents who fell between 18-30 and 30-50.
- Respondents from the APAC (Asia-Pacific) region led the poll with 38.8%.
- Thailand, Malaysia, and the Philippines rank highest in NFT adoption.
- 31.7% of respondents came from Europe.
- 18.3% came from South America.
- 11% came from Africa
Most Respondents Were NFT Veterans
The bulk of the respondents were veteran crypto participants. This category of people made up 40% of the poll. Some had been in the crypto world for over a year before the NFT craze began. Nevertheless, NFTs undoubtedly has a magnetic feel to them. So most people believe many crypto newbies came into the industry on account of NFTs. However, CoinGecko’s research seems to disprove such notions.
About 88% of the respondents did not enter crypto due to NFTs. Also, half of the respondents claimed to be degens. Some others noted that they got their first NFT before the NFT summer of 2021. Moreover, about 26.9% acquired their first NFT within the last 6-12 months, while 16.3% got theirs within the last 3-6 months. Additionally, about 16.4% only purchased their first NFT during the previous three months.
In addition, most NFTs are acquired through secondary market purchases (36.9%) or direct minting (36.5%). The large % of acquisitions appears to be active rather than passive. Active means people purchase their NFTs as opposed to being airdropped or gifted. Those who bought NFTs made up 36.9% of the poll, while those who minted were about 36.5%.
What Type of NFTs Was the Most Popular?
NFTs’ use cases span several industries. An NFT can be any digital asset, including memes or in-game items like coats, virtual land, pets, etc. NFTs can also be used as a digital record of a tangible commodity such as real estate. Their vast use cases make them a perfect fit for any industry. But, the gaming world and the metaverse have more NFT engagement, according to CoinGecko’s research.
NFT ownership is concentrated in metaverse/gaming type NFTs. This took up about 35.8% of the poll. Other NFT use cases, such as profile pictures, took up 27.4%. Additionally, many respondents admitted to using NFTs as arts. This took up 25.3% of the poll.
Furthermore, the poll observed that gaming NFTs proved to be a hit in Asia. Since the pandemic, gaming projects have appeared to be one of the biggest streams of income for people in the Asian region. So experts anticipated that NFTs would thrive in that industry amongst Asian users.
How Popular is the Metaverse?
The metaverse was another blockchain-based industry that gained traction in 2021. Therefore, CoinGecko studied the popularity of metaverse amongst the respondents, and the result was intriguing. About half of the respondents had previously taken part in a metaverse project. Also, only 20% of them are considered regulars. Moreover, about 30.5% of respondents said they had purchased metaverse lands or items.
The results from the poll highlighted the repeated crossover between GameFi and Metaverse NFTs/projects. GameFi projects and the metaverse seem to incorporate features frequently. The metaverse is expected to be worth $800 billion in the next two years, and games appear to be the most likely NFT entry point for most people, primarily crypto enthusiasts.
Respondent’s Motivation and Portfolio
Blockchain users often have a motivation behind their activities. So CoinGecko’s poll showed that about 42.2 % of respondents purchased NFTs to “buy low and sell high.” Other respondents purchased NFTs for their utility and for ‘HODL.” This made up about 50% of respondents. About 6.8% of the respondents said they bought NFTs for various reasons.
About 50.2% of the respondents noted that they already had experience in selling NFTs, while 43.3% said they had made profits from NFTs. HODLers, by choice, with no interest in profiting from NFTs, account for 23% of the total populace.
Surprisingly, despite the fame of NFTs, they made up a fraction of the respondent’s portfolios. For example, about 70 percent of CoinGecko’s respondents noted that NFTs comprised 0-25 percent of their crypto holdings.
Conclusions
CoinGecko’s report on NFTs offered everyone a huge clue into the present state of NFTs. Many crypto enthusiasts are still into NFTs as they see them as a healthy asset to own. Finally, as reported by CoinGecko, Gaming and Metaverse have the most NFT users. So this stat could be worth an extra look.
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