The NFT sector is projected to move around $800 billion over next 2 years: Report

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Although NFTs have been a part of the cryptocurrency market since 2014, interest and adoption have grown rapidly over the past two years. At its peak in August 2021, the total trading volume of NFTs increased to over $5 billion, in what became known as “NFT Summer” for short.

According to a report by Coingecko, the NFT market is now expected to grow by over $800 billion in the coming two years. The report, which used investors mostly from Asia and the Pacific, highlighted 871 respondents, about 72% of them already own NFT(s), of whom more than 50% declared that they had were 5 or more.

For investors, the report indicated a balance between generations, suggesting that 43.6% of the surveyed NFT investors were between 18-30 years old and 45.2% were between 30-50 years old.

While the bulk of the NFT market appears to be concentrated in popular collections such as Bored Ape Yacht Club (BAYC) and Cryptopunks, 35.8% of respondents said they are interested in NFTs involving play-to-earn and metaverse games, and 25% Said they like Art NFT.

“The metaverse sector is projected to move approximately $800 billion over the next 2 years, and gaming appears to be the most likely entry point into the NFT market,” the report said.

“Our respondents indicated that “flip and earn” was the primary motivation behind their NFT purchases, however 2/3 of the respondents indicated that NFTs only made up <25% of their overall crypto portfolio. Rather than flipping what would motivate them to hide the NFT, more than half indicated that "having current/future utility" would be a primary factor in choosing to hodl. CoinGecko co-founder and COO Bobby Ong told Cointelegraph.

Although data from TeleGeography stated that there were already more than 7.1 billion active mobile devices worldwide, PCs remain the preferred choice for NFT trading and mining, with 60% of investors doing so. Mobile is behind with only 21% responses. “This can be attributed to the ease of using the PC to navigate the time-sensitive NFT mints/trades,” the report said.

When it comes to tracking new or upcoming NFT projects, 60% of respondents said they prefer to use Discord and Twitter. The minimum value also appears to be important for the perception of value. The report revealed that when it comes to valuing NFTs before buying, the majority of respondents (38.5%) were interested in the lowest value and only 23% and 21.8% reported “strong community” and “artistic value/sense” respectively. Attachment” selected.

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On the other hand, most market investors said that they are not interested in selling their NFTs. More than 50% of the respondents highlighted that they have a HODL mindset and see a future where non-fungible tokens could be key items in the game. Despite all the hype, NFTs only make up a small part of most cryptocurrency portfolios, with 70% of respondents reporting that they only represent 0-25% of their cryptocurrency portfolios.

According to the report, Ethereum remains the dominant chain for NFTs among 46.3% of the respondents. In second place was Polygon with 13.8%, followed by Solana with 13.5%. Other smart contract platforms together accounted for 26.4% of the NFTs traded by Coingecko respondents.

When it comes to the markets, the data confirmed the dominance of OpenSea, which was responsible for 58.7% of trading activity. Runner-up Solanamart had just 10% marketshare, while LuxRayer had less than 4%.

“Interestingly, Crypto.com has some of the most cited examples placed under “Others” by VEVE Official and Irreversible X respondents, perhaps indicating their increasing prominence. LuxRay and X2Y2, on the other hand, have been given their generous incentive programs. failed to build stickiness, despite early success”, Koingeko reported.