A new Coingecko and Blockchain Research Lab study has revealed why people buy NFTs. The researchers discovered that many people purchase these tokens for long-term profits and utility.
Usually, NFTs enable holders to lay claims on their unique items. They allow creators to tokenize real estate, art, collectibles, etc. By creating NFTs of important things, the owner can secure them on the blockchain and sell and trade them efficiently.
Study Respondents Reveal Reasons For Investment In NFTs
Joint research by Blockchain Research Lab and CoinGecko on the benefits of buying Non-Fungible Tokens has shown different reasons people buy NFTs. CoinGecko and Blockchain Research Lab collectively performed the NFT and Crypto Users Survey, collecting 343 responses From December 2022 to January 2023.
Out of the 11 outlined reasons for buying an NFT, “Using an NFT for its Intended Function” ranked number one at 77.6%. But still, 15.7% of NFT holders claimed to be neutral about utility, and 6.7% said they didn’t care.
The second most important factor for buying NFTs is the “Long Term Profit.” Over 76% intended to sell out their NFTs later at a higher price. NFTs are getting more expensive, but their value, in the long run, might be much higher.
The demand for Non-Fungible Tokens is rapidly growing, and the total market value is expected to hit $230 billion by 2030. Anyone investing in a long-term plan for owning and selling tokens can gain more if they get started now, especially if the demand for Non-Fungible Tokens keeps increasing at this rate in the years to come.
Other factors include; gaining a stake in the DAO, enthusiasm for the technology, being part of the community, enthusiasm for the business model, etc.
However, disrupting established structures or industries was ranked as the least crucial factor on the list, with 59.5% of people surveyed agreeing. Some changes are anticipated in the upcoming few months following the recent trends in the Non-Fungible Token industry.
Major Firms Are Jumping into NFTs
Despite the dramatic fall of NFTs from their high in January 2022, several big companies still show interest in investing and joining the market.
Amazon recently announced creating its own NFTs marketplace but later paused due to the FTX crash. The marketplace will focus on fashion Non-Fungible Tokens connected to the real-world utility.
Related Reading: Bitcoin Long-Term Holder Rate Returns To 2021 Levels, Good News For Crypto?
Amazon is still considering creating the marketplace without the integration of a crypto-wallet. Meanwhile, payments will go through credit or debit cards, drawing more non-tech individuals into the marketplace.
Featured image from Pixabay and chart from Tradingview
Source: https://bitcoinist.com/people-purchase-nfts-for-utility-and-profits/