Crypto tracking website Coingecko have written an NFT market analysis report for 2022, including crowdsourced insights and poll data.
View the eleven page .pdf NFT report here.
Coingecko NFT Survey
The main methodology used was a survey in the form of a Twitter poll – most of those interested in or actively investing in NFTs also use Twitter as their preferred social media platform, alongside Discord.
Around 400 – 900 Twitter users took part in the NFT survey. In terms of NFT ownership its findings were that:
- 72.1% of respondents owned non-fungible tokens
- 26.8% owned fewer than five NFTs
- 11.5% owned more than five but no more than ten NFTs
- 33.9% owned more than ten NFTs
Representing a sample of the NFT market, those respondents were aged:
- Under 18 – 3.5%
- 18 to 30 – 43.6%
- 30 to 50 – 45.2%
- Over 50 – 7.8%
In terms of geographical region, the NFT survey recorded participants were located in the:
- Asia Pacific – 38.8%
- Americas – 18.3%
- Africa – 11.2%
- Europe – 31.7%
That Asian Pacific dominance matched a previous NFT market analysis Coingecko carried out related to the Axie Infinity game, and a Finder.com NFT data survey that found the Philippines, Thailand and Malaysia dominate in NFT adoption.
European NFT holders were not far behind however. In terms of when respondents first got into buying or trading NFTs, that was:
- Over a year ago – 40.4%
- 6-12 months ago – 26.9%
- 3-6 months ago – 16.3%
- Within the last 3 months – 16.4%
Slide from the NFT report. Yellow = Yes, Green = Not Sure, Dark Green = No
Some other interesting market insights were that:
- 88.1% of those polled were already into cryptocurrency before NFTs
- 46.3% used Ethereum the most for NFTs
- 49.6% had participated in the metaverse in some way
- 30.5% also owned NFT real estate i.e. metaverse lands or items of some kind
- 58.7% used Opensea as their preferred NFT marketplace
- 43.3% were sure they were in profit from NFTs (22.9% didn’t care, just ‘hodl’ their digital assets)
- 8.8% had put 75-100% of their crypto portfolio into NFTs
- 52.8% would take out an NFT loan
In total there were 23 questions on the NFT survey, and the last one asked about their reasons for owning NFTs:
- Artistic value / attachment – 21.8%
- Current / future utility – 50.9%
- Strong community – 23%
- Other – 4.4%
A key finding was that NFT games or metaverse related tokens were the most popular collectibles, and the largest percentage share of 42.2% wanted to eventually ‘flip’ their NFTs to earn money rather than collecting them to hold forever or for their utility – although 51% of NFT owners fell into those two latter categories combined.
Floor price was the main factor 38.5% considered when buying NFTs, followed by 29.7% considering rarity (rare traits and attributes).
Unfortunately the NFT poll was bombarded with spam bots, which crypto fan Elon Musk who just bought Twitter has vowed to ‘defeat or die trying’. So there weren’t many replies that went into more detail when asked to do so. The sample size was also low for an NFT market analysis.
The information collected was interesting though. Another metric to analyze the NFT market activity is to track Opensea volume on Dune Analytics, which increased about 30% in April 2022 versus March to hit $3.2 billion.
Many blue chip NFT collections have also recently hit new all time high valuations, such as BAYC, MAYC, BAKC, Doodles, Azuki and Moonbirds.
Cryptoassets are a highly volatile unregulated investment product.
Read More: NFT Market Analysis – Coingecko NFT Survey