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Most People Purchase NFTs For Utility And Profits, Coingecko Study

Press Releases Crypto News Bitcoinist Most People Purchase NFTs For Utility And Profits, Coingecko Study

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

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Author: Eli Dambell

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