CoinGecko surveyed 343 individuals on the importance of 11 factors in purchasing NFTs. According to the survey results, utility is the top reason for buying NFTs!
“Utility” led the survey with 77.6% of votes (32.7% very important, 32.7% important, and 12.2% slightly important). “Disruption” came in last with 59.5% of the survey pool (20.1% very important, 26.5% important, and 12.8% slightly important).
The report showed that 3 out of every four NFT holders consider the utility of an NFT collection before buying it. Although NFTs initially offered little to no utility, these digital assets have evolved to have more use cases.
The second most important factor turned out to be long-term profit. 76.1% of participants voted for their gains, as NFTs as often considered long-term investments.
7 out of 10 participants chose to buy NFTs to own a stake in the venture or DAO. People sometimes participate in NFT projects because they enjoy their ecosystems and communities.
71.1% voted for their enthusiasm for the collection’s technology. NFT projects that use new technology or improve on existing technology tend to stand out and attract potential holders.
68.8% of holders purchase NFTs to become part of the project’s community and team. It could be an opportunity for holders of budding projects to gain access to exclusive rewards or rise through the ranks. Community members with similar interests could also become friends. These reasons are why project developers pay attention to building and maintaining strong communities for their projects.
67.9% equally voted for enthusiasm for the business model and enthusiasm for the artwork of the NFT project. Although they are ranked less than the technology behind the project, a collection’s business idea and artwork are also significant in buying NFTs.
66.8% of participants voted for short-term profits, making it the 8th most important reason. NFT holders usually buy NFTs to sell them shortly after purchase to make profits. Flipping was more frequent during the NFT bull run. However, short-term profits ranked lesser than long-term profits because flipping demanded active monitoring and timing of the markets.
63% of holders purchase NFTs as a means of savings. However, NFTs are less recommended than cash because of their higher volatility and risks. The two least important reasons are social good and disruption. 6 in 10 NFT holders buy these assets because of their sustainability, philanthropy, and other social benefits.
Disrupting existing structures came last, despite being considered important by 6 out of 10 holders. NFTs have changed and improved on several concepts, including virtual ownership and identities, content creation, and much more.
The CoinGecko report provides more insight into the motivations behind NFT purchases. NFT creators can utilize this analysis to improve their projects. Stakeholders can also use this report to traverse the NFT space and develop strategies aligning with the markets.