There are different reasons why people buy NFTs, and that is why it has been a hit in the last two years.
According to a study by CoinGecko, most people who invest in NFTs do so for utility and long-term profits. Coingecko did the research in collaboration with the Blockchain Research Lab, surveying 343 users. The survey was conducted between December 2022 and January 2023. The survey report was officially rolled out on April 10.
The theme of the survey is to find out the top reasons users get into NFT investments.
The report clearly showed that most NFT collectors do that for utility. From the report, 15.7% of the respondents were neutral about utility, and 6.7% thought it was not an important consideration before buying an NFT.
Using NFTs for the intended function came first at 77.6%. Long-term profit was the second main reason, with 76% of users saying they plan to sell the NFTs at a higher price later. From the research gaining a stake in the venture or DAO came third, whereby 72.9% of respondents said it was one of the factors to consider when buying an NFT. Other top reasons for people investing in NFTs include fear of missing out/being part of the community at 68.8%, enthusiasm for the idea behind the NFT at 67.9%, beauty of the art collection at 67.9%, short-term profits, savings, social good and disrupting industries.
Even though there’s been a downturn in the NFT market, there are those NFTs that have sold for millions in the past. With gaming, the NFT market is expected to grow and heat to 230 billion dollars by 2030. Web 3 projects mainly use NFTs for utility purposes.