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

Published at: April 28, 2022

Although nonfungible tokens (NFTs) have been a part of the cryptocurrency market since 2014, interest and adoption has risen rapidly over the last two years. At their height in August 2021, the total trading volume of NFTs rose to over $5 billion, kickstarting what briefly came to be to known as “NFT Summer.”

According to a report by CoinGecko, the NFT market is now expected to move more than $800 billion in the coming two years. The report, which mostly utilized investors from Asia and the Pacific, highlighted that of 871 respondents, around 72% of them already own at least one NFT, with more than 50% of them declaring that they had five or more.

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

While the bulk of the NFT market appeared to be concentrated in popular collections such as the Bored Ape Yacht Club (BAYC) and CryptoPunks, 35.8% of respondents said they were interested in NFTs linked to play-to-earn and metaverse games and 25% stated that they prefer art NFTs.

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

“Our respondents have indicated that ‘flip & earn’ was the primary motivation behind their NFT purchases, though 2/3 of respondents indicated that NFTs only made up

Although data from TeleGeography stated that there were already more than 7.1 billion active mobile devices worldwide, the personal computer remains the preferred choice for NFT trading and minting, with 60% of investors doing so. Mobile lags behind with a mere 21% of responses. “This can be attributed to the ease of using a PC to navigate time-sensitive NFT mints/trades,” the report highlighted.

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

On the other hand, most market investors said they were not interested in selling their NFTs. More than 50% of respondents highlighted that they have a HODL mentality and see a future where nonfungible tokens could be important items in games. Even with 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.

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

When it came to marketplaces, the data confirmed the dominance of OpenSea, which was responsible for 58.7% of trading activity. Runner-up Solanart held just over 10% market share, while and LooksRare had less than 4%.

“Interestingly, Crypto.com, VEVE Official and Immutable X are some of the most cited examples parked under ‘Others’ by the respondents, perhaps alluding to their rising prominence. LooksRare and X2Y2 on the other hand, despite their generous incentive programs, failed to build stickiness despite early success,” pointed CoinGecko.

Tags
Nft
Related Posts
Boson Protocol seeks to blend physical and digital marketplaces in the Metaverse
Boson Protocol is a decentralized commerce protocol that seeks to enable the sale of physical goods, services and experiences in the Metaverse as nonfungible tokens (NFTs), and hopes to provide an infrastructure layer for exchanging assets of non-monetary value. For example, an NFT of a pair of sneakers bought using the Boson Protocol in the Metaverse would then be redeemable for that physical pair of sneakers in the real world, and vice versa. Ahead of the launch of its first Metaverse commerce experience in Decentraland, called Boson Portal, Cointelegraph spoke with Justin Banon, co-founder of Boson Protocol, to learn more …
Adoption / Nov. 18, 2021
ENS’ director of operations says that DAO-based governance ‘has always been the plan’
On Monday, distributed domain protocol Ethereum Name Service, or ENS, launched its own governance token in an effort to distribute voting rights for its new decentralized autonomous organization, or DAO, to active users of the ecosystem. Cointelegraph spoke with Brantly Millegan, ENS’ director of operations, to learn more about the nonprofit’s decision to shift to a DAO model and his thoughts on the power of the ENS community: “ENS is an open public protocol. The core components of ENS are decentralized and self-running (e.g., no one can take away another person’s .ETH name), but there are a few things that …
Adoption / Nov. 10, 2021
OpenDAO (SOS), LooksRare (LOOKS) and WTF token: 3 airdrops, with 1 scam
NFTs continue to surge with what looks to be no end in sight. Since January 14, 2022 OpenSea notched trading volumes over $1.03 billion, and its latest rival, LooksRare, has eclipsed the platform according to data from DappRadar. What’s clear is that NFT collectors and traders appear to be shifting their sentiment on where they are seeing value. Since the start of 2022 there's been an emphasis on “community” with a buzz and advocacy of rewarding users for their participation. OpenSea has already generated more than $3.2 billion in total volume despite many NFT traders feeling that the marketplace betrayed …
Adoption / Jan. 21, 2022
How to convert your digital art into NFTs and sell it
What is an NFT? NFTs are nonfungible tokens. The adjective “nonfungible” is often used in economics to represent features such as uniqueness and non-interchangeability. In the crypto space, nonfungibility simply indicates that one item cannot be exchanged for another. A “token” as a unit of account is basically a certificate of validity stored on the decentralized blockchain, making digital assets traceable and accessible to everyone. As a result, NFTs are a one-of-a-kind virtual currency that can fall into pretty much any category and usually take the shape of paintings, videos, music, collectible items in video games or any other type …
Adoption / March 26, 2022
Robinhood Wallet rolls out on iOS with Android support to follow
Trading platform Robinhood has launched its Web3 wallet on Apple’s App Store, becoming available to iOS users in over 130 countries. Robinhood shared the news in a Mar. 1 post, stating that users would no longer need to sit on a waitlist to access the new multi-chain, self-custody wallet. It added that it will be supported on Android “later this year.” #RobinhoodWallet is now available to everyone with iOS: https://t.co/yUdL8jCgJN pic.twitter.com/q7RIWBJUIT — Johann Kerbrat (@JohannKerbrat) March 1, 2023 Since the beta launch of the Robinhood Wallet in September, the trading platform integrated Ethereum — in addition to already supporting Polygon …
Adoption / March 2, 2023