NFT Purchases Primarily Based on Utility & Profitability in 2023

A recent report listed the top 11 motivators for investors to purchase NFTs (non-fungible tokens). The report by CoinGecko notes that its utility is the most significant factor in driving purchasing decisions.

The reports show that over 75% of cryptocurrency owners now hold at least one NFT.

Utility Drives NFT Ownership

The report notes that 77.6% of NFT owners consider the asset’s value or the benefits of ownership before purchasing.

Curiously, 15.7% said they were dubious of the utility of NFTs. According to the report, many of these NFT owners may view them more as collectibles than anything.

NFTs are common in the gaming industry, and many brands and merchants are implementing them in their rewards programs. Adidas recently announced the final stage of its Into The Metaverse project. The launch of ‘ALTS’ non-fungible tokens is similar to those of rivals Puma and Nike.

BeinCrypto recently pointed out that non-fungible tokens are gaining popularity due to more than their capacity to symbolize exclusive ownership. They also have the power to develop novel experiences for communities while promoting a sense of community, particularly when the digital asset can encourage interaction and brands tokenize their clientele by providing benefits like access to private events and utility.

According to the survey, 68.8% of NFT holders purchase shares because they want to be a part of the project team and community, ranking as the fifth most important factor.

But, before that, 76.1% of owners rank long-term profitability as their second most important motivation for purchasing NFTs. NFTs have been a popular choice among artists and creators to monetize their work, which has built value in return.

The third generation of Reddit’s “Collectible Avatars” was recently launched, a collection that exceeds a market capitalization of $74.5 million.

The Market is Too Big to Ignore  

By having the chance to take part in the collection as a stakeholder, another 72.9% of NFT owners are drawn to them. According to CoinGecko, at least seven out of ten owners are inspired by the opportunity to own a stake in the business or decentralized autonomous organization. (DAO). Meanwhile, the fourth most significant factor was a personal passion for the tech behind NFT.

That said, enthusiasm for the collection’s business plan or concept and the collection’s artwork are other important factors that decide NFT ownership.

The motivation for gains in the near future follows next. In decreasing order of importance, other justifications for purchasing an NFT are savings and social good.

Lastly, upsetting the status quo was the least important justification for purchasing the non-fungible tokens. Nearly 6 in 10 NFT owners believe disruption is crucial. 3 in 10 are neutral on disruption, while 1 in 10 believe it is unimportant, reportedly representing individuals with a more conservative viewpoint.

NFTs have sold more than $69.5 million worth of digital items in the previous 24 hours, according to CoinMarketCap. Over 92,000 sales during that time have helped reach the goal. The market is too big to ignore by this point, with a combined market value of almost $2 billion.