The increasing market of non-fungible tokens (NFTs) has invited significant attention towards it. According to a recent survey by CoinGecko, three out of four people who appeared in an interview said they owned non-fungible tokens (NFTs).
CoinGecko provides a fundamental analysis of the digital currency market. In addition to tracking price, volume, and market capitalization. It also tracks community growth, open-source code development, major events, and on-chain metrics.
The study included 438 respondents and was held between Dec. 2022 and Jan. 2023. About 75.8% of the respondents said they owned NFTs whereas 21.7% didn’t have and never owned NFTs before. Only a tiny percentage of the participants (2.5%) said they had NFTs in the past, but they sold them all.
Unfortunately, the report doesn’t include the reasons behind the investors’ decisions to not invest in NFTs or why they sold them. Hence, it still remains unknown if the 21.7% who never held NFTs are genuinely against the concept of NFTs or couldn’t get the chance to invest in a project they resonated with.
Nonetheless, the survey does explore the size of the investors’ NFT portfolios. As per data, amongst the investors who have held NFTs, about 26.5% said they held NFTs are keen collectors and own more than 50 NFTs. The report highlights that this group will likely include investors who are very enthusiastic about NFTs or traders who flip NFTs.
Now, the second largest cohort was found to be the group that said they owned between two and five NFTs followed by the investors who owned between 11 to 20 NFTs as the third largest group, accounting for approx 9.6%.
Notably, the smallest group was found to be the one with 4.8% who said they owned only one NFT. The report states that people who stopped participating in NFT trading were likely to hold between two to five NFTs, which suggested that investors rarely stopped participating in NFT trading after their first one.
Another survey from CoinGecko dug deeper into investors’ sentiments about the risks involved in NFTs and regulatory guidelines concerning NFTs. This report revealed that in total about 48% of the participants wanted more regulatory scrutiny over the NFT sector whereas about 30% were neutral about the idea and about 24% opined that the sector did not need any further regulation.
Amongst the 48% wanting more regulation, 18.7% of the respondents were strongly affirmative and the rest 29.4% agreed to the idea but were comparatively softer in their stance. Interestingly, the percentage of the latter group was the same as those who didn’t have any opinion and were neutral. Additionally, as per the report, 22.4% of the participants said they didn’t think the NFT space needed more regulatory oversight, while 12.2% felt very strongly about it.
Notably, even though the group asked for more regulatory oversight stands in the majority, the ones who felt strongly about it were the minority. On the other hand, participants who were firmly against more regulatory oversight within the NFT space accounted for the majority of the group who agreed.
The popularity of NFTs is growing day by day and the statistics clearly seem to be evidence of it. Last year, the significance of NFTs in the Web3 environment spread into popular culture. From the continuous use of NFTs by established organizations like the NBA and FIFA to Amazon’s creation of a documentary series about those who collect NFTs.
There has also been good news on the regulatory foot front. Despite its anti-crypto stance, a Chinese court gave legal protection to NFTs. China also announced the launch of its first national NFT marketplace at the end of 2017 to act as a secondary market for the trading of digital assets.