Why Do People Buy or Trade NFTs?
Based on findings from our April 2022 NFT Survey, people buy or trade NFTs ‘to flip and earn’. In other words, people ‘buy low, sell high’ – purchasing NFTs at a low price to sell it for higher, and therefore earning a profit on sales.
On the other end of the spectrum, the HODL mentality of collecting (‘to collect’) and owning NFTs ‘for their utility’ have a combined dominance of around 50%. This statistic corresponds to another question in our survey, where only half of the respondents said ‘Yes’ to the question ‘Have you sold any NFTs’.
In spite of the motivations above, in a follow up question around ‘have you made a profit’ (from NFT trading), slightly less than half of 480 respondents (43%) have profited, while 23% are HODLers by choice who do not seem to care about profiteering off NFTs. If considering only the responses for ‘Yes’ (profited) and ‘No’ (did not profit), 57% of traders earned a profit in NFT sales, hinting that respondents might be experienced NFT traders with a trading proficiency.
Interestingly, for the majority of survey respondents, NFTs make up only a small percentage of crypto portfolios, where close to 70% feature 0-25% of NFTs.
About the NFT 2022 Survey
This NFT Survey was conducted through a Twitter Poll in April 2022, with a range of 394 to 874 respondents, varying for each question. Majority of the respondents are from the APAC region, aged 18-30 and 30-50. 72% of these own NFTs, with more than half of them having 5 or more NFTs.
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Curious to find out more about our previous research studies? Check out this one we did on the Market Share of NFT Marketplaces.
Julia leads Growth at CoinGecko and is passionate about onboarding more women onto Web3. That said, she is generally poor at timing the market, so she DCAs for safety. Follow the author on Twitter @ngxinyajulia
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