The NFT market, once a booming segment of the cryptocurrency space, has faced a significant decline since late 2022. Choose to leave the market for various reasons.
Our recent survey aimed to find out whether People are staying in or leaving the NFT market and the main factors that influence their decision-making. This research report presents the key findings of the survey, exploring why some investors continue to hold NFTs, why other investors are exiting, and what the future of the NFT market may hold.
Main findings
- Although 96% of NFTs are considered “dead”, almost two thirds NFT investor plans continue Stay in the NFT market.
- 57% NFT owner choice Profit is the main reason they stay Invest in NFT, 80.7% The goal among them is Long term profits.
- When faced with a sharp drop in NFT prices, 69.7% of long-term investors continue to hold their NFTs and wait for the market to recover.
- one third of investors Want to leave the market for the following reasons NFT price drops.
- Among investors who have lost interest in NFTs, 55.1% admit it because The hype surrounding NFTs is over.
Two-thirds of investors plan to continue holding NFTs
Despite the significant challenges facing the NFT market, a large number of investors remain steadfast. Although there are reports that 96% of NFTs are considered “dead” (meaning they have little or no activity or value), 66.5% of NFT holders plan to stay in the market, while the rest plan to leave the market.
Among investors who choose to stay in the NFT market, 67.3% believe that NFT growth will be driven by positive market sentiment and increased adoption. They believe NFTs have long-term potential and will continue to expand as more industries adopt the technology.
A large portion (36.7%) cited positive market sentiment as a key factor, while 30.6% cited the increasing use of NFTs across industries as a reason for their optimism. In addition, 19.6% are excited about the upcoming NFT project, and 13.2% believe that new regulatory developments will further support market growth.
Among investors who plan to exit the NFT market, 65.5% intend to sell all NFTs before exiting. This reflects a desire to fully liquidate their assets, with 65.5% committing to selling all of their assets, 22.33% planning to sell only a portion of their NFT collection, and 12.14% choosing to keep their NFTs, likely in the hope of still being able to survive after exiting. Earn future benefits.
Additionally, 72.3% of investors plan to leave the market before 2026, indicating a clear timetable for their departure. Among them, 36.4% plan to exit in 2024, 35.9% plan to exit in 2025, while 27.7% have not yet made a decision and may wait for market conditions to improve before making a decision. This suggests that while many have lost faith, some are still weighing their options before leaving entirely.
Reasons why investors still choose NFTs
For 56.97% of NFT holders, profit is the primary factor influencing their decision to continue investing in the market. Other motivations, although less common, also play a role in keeping investors engaged. About 19.8% of holders stay because of the utility and benefits offered by NFTs, such as rewards or exclusive access to events.
At the same time, 10.76% of investors are motivated by a desire to support the NFT community and find value in common interests and connections. Finally, 12.47% of holders continued to invest due to their interest in NFT artwork.
Earn profits from NFTs
Among those focused on making profits, most NFT holders make money in a few key ways. About 42.1% of people participate in flipping NFTs, which means buying low and selling high. Another 37.3% earn profits from utility benefits, such as in-game rewards or digital assets, while 29.6% benefit from airdrops (distributions of free NFTs).
In addition, 29.2% of investors created and sold their own NFTs, and 22.7% of investors chose to hold NFTs (HODL) in the hope of future value appreciation.
Among investors who focus on profit, 80.7% achieve long-term profits by holding NFT. In comparison, only 19.3% The pursuit of short-term gains shows that most investors are willing to wait for the market to mature and reap rewards over a longer period of time.
Among those who choose long-term profits, 32.4% plan to reinvest in NFT for at least three years. Meanwhile, 31.4% expect to hold assets for one to three years, 3.2% expect to hold for less than a year, and 31.4% have yet to decide how long to hold.
Among them, when NFT prices fell, 69.68% of long-term investors chose to hold NFTs and wait for the market to recover, showing their resilience and confidence in the future of the market. At the same time, 12.77% chose to sell some NFTs during the economic downturn, while 16.49% took advantage of the decline to buy more NFTs.
Only a small percentage (1.06%) decided to sell all NFTs in response to the price drop. This behavior suggests that long-term investors are less sensitive to short-term market changes and are more likely to stay invested.
Short-term investors, on the other hand, have different strategies. About 42.2% said they would sell NFTs and exit the market once profits exceed 20%.
Of this group, 6.7% are targeting profit margins of 10-20% and 28.9% are targeting over 50%. At the same time, 22.2% of people do not have specific profit targets, but decide based on market conditions. These short-term investors are more likely to exit the market once NFT prices rise to meet their expectations.
NFT Utility and Benefits
Among those investors who prioritize the utility and benefits of NFTs, airdrops emerged as the most important factor, with 48.1% stating that the potential to obtain free NFTs contributes to their commitment to the market.
In addition, 35.8% of investors value blockchain gaming projects, which can enhance their gaming experience, while 43.2% appreciate the exclusive benefits and access brought by certain NFTs. Additionally, a further 35.8% of respondents recognize the appeal of real-world assets related to NFTs, which can add tangible value to their digital investments.
Support the NFT community
For investors who prioritize supporting the community, the common interest in NFT and related projects is the main reason why 49.3% of investors join the NFT community.
Additionally, 35.2% value connecting with like-minded people. Additionally, 15.5% of people are drawn to these communities to stay updated on industry news and events. This shows how being part of a community helps investors connect with others with similar interests.
Interest in NFT art
Driven by love for art and design 47.2% of investors are interested in NFT. Supporting favorite artists was the reason for 11.1% of these investors, while 41.7% Be attracted to the uniqueness of certain pieces. This interest highlights the important role that artistic appeal plays in attracting investors into the NFT art market.
Reasons why investors want to leave NFTs
Due to falling prices, about one-third of investors are considering exiting the NFT market, with 33.5% cited this as their main reason.
In addition, 13.6% of investors are frustrated by the lack of practicality of NFTs, while 12.1% are worried about the failure of major projects. Additionally, 17% are concerned about an increase in scams and fraud, and 23.8% have simply lost interest in NFTs.
Lost interest in NFT
Among people who have experienced “loss of interest”, 55.1% believe that the enthusiasm surrounding NFTs has faded. Many believe that the initial buzz is no longer there, leading to a decline in their enthusiasm.
In addition, 16.3% of investors believe that the current project is not innovative and creative enough. As a result, 24.5% are exploring other areas that interest them more. Only 4.1% mentioned other reasons for lack of interest in NFTs. This trend shows how important continued innovation is to allow investors to participate in the NFT market.
Scams and scams are on the rise
When it comes to concerns about NFT scams, more than half of respondents (57.1%) have not experienced any scams or fraud in the past six months; they have only heard of other people experiencing these problems. At the same time, 20% of people said they had experienced fraud once, and 14.3% had experienced fraud 2 to 3 times.
Additionally, 8.6% said they had been scammed more than three times. Although most investors have not personally experienced fraud, awareness of these risks may affect their overall confidence in the NFT market.
NFTs lack utility
For those who believe NFTs lack utility, real-world assets are the most attractive benefit. about 71.4% of investors said that a connection to real-world items would encourage them to continue participating in NFTs.
Other factors also came into play, with 42.9% appreciating exclusive perks and access, 35.7% interested in potential future airdrops, and 28.6% interested in blockchain gaming items. This highlights that actual returns are critical to maintaining investor interest in NFTs.
Failure of major NFT projects
Among those worried about failure of major projects, 44% of investors said that more than half of the projects they invested in failed.
Specifically, 36% of respondents said that 30% to 50% of their investments failed, while 12% said that 10% to 29% of their projects failed. Only 8% of respondents said less than 10% of investments fail. This shows that investors are very worried about the reliability and success of NFT projects.
methodology
We conducted a survey 943 cryptocurrency holders Gather insights about their experiences with NFTs.
In terms of age, 31.2% of the respondents are aged 12 to 27 and belong to Generation Z, while 52.5% of the respondents are aged 28 to 43 and represent the Millennial generation. Additionally, 12.9% are between the ages of 44 and 59, or Generation X, and 3.4% are over 60 years old.
Regarding gender, 36.7% of participants identified themselves as female, 62.7% identified themselves as male, and 0.6% did not want to disclose their gender.
Geographically:
- 42.2% from the Americas (North America, South America, Central America and the Caribbean)
- 11.9% are from Asia Pacific (Central and South Asia, Northeast and Southeast Asia, Australia and Oceania)
- 20.9% from Europe
- 25% from the Middle East and Africa
When asked about NFT ownership, 65.2% of respondents confirmed that they currently own NFTs. From the perspective of holding NFT time, 14.1% of people hold NFT for less than a year, 36.4% of people hold NFT for 1-2 years, 29.4% of people hold NFT for 2-3 years, and 20% of people hold NFT. More than 3 years.
