People purchase NFTs for various reasons, but according to a new survey from CoinGecko, the majority buy them for utility and long-term profits.
Utility and long-term profits have been ranked as the top reasons for buying nonfungible tokens (NFTs), according to a survey conducted by CoinGecko and Blockchain Research Lab.
An April 10 CoinGecko report found most considered how much utility an NFT collection offers and the benefits of holding the token before buying, with over 77% of respondents saying using an NFT for its “intended function” had some level of importance out of the 11 listed reasons for buying an NFT.
However, 15.7% responded they were “neutral” about utility, and 6.7% felt it was “not important” in the decision-making process before buying an NFT.
The potential for long-term profits came in as the second most crucial factor, with just over 76% of respondents giving importance to selling their NFTs at a higher price later on.
Some NFTs have sold for millions in the past, but the market has experienced a severe downturn in step with the broader crypto market. Still, the NFT market is expected to hit $230 billion in value by 2030.
The third most important reason people bought NFTs was to participate as a stakeholder in a decentralized autonomous organization, with 72.9% motivated by the opportunity to gain a stake in such a project.
Other high-ranking reasons included enthusiasm for technology, community involvement and enthusiasm for an NFT collection’s business or artwork.
The reason that ranked as the least important on the list was “disrupting established structures or industries,” which was listed as a top reason for buying by 59.5% of respondents.
Overall, all 11 listed reasons were more heavily rated as having some level of importance rather than being rated neutral or not important.
The results were taken from 343 responses examined by CoinGecko and the Blockchain Research Lab, which were received during a survey conducted from December 2022 to January 2023.