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This is Why You Must Own an NFT in 2023

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By Jessy Sloan - - 5 Mins Read
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According to a new report from CoinGecko and Blockchain Research Lab, it has been revealed that utility and long-term profits are some of the primary reasons people are buying NFTs. On April 10th, CoinGecko published a report highlighting some of the significant reasons people buy NFTs.

The survey noted that the majority of those within the crypto industry are holders of NFTs. As many as 75% of people in the crypto industry have their hands on NFTs. "Nevertheless, NFTs are increasingly being accepted as an inevitable development in the digital world. Not only are NFTs popular among crypto holders, with over 75% owning at least one NFT, traditional industries' brands also have NFT collections," the report said

Out of the 11 listed reasons that make people buy NFTs, 77% of the respondents said they purchase due to NFT utility ideas. However, 15.7% said they were neutral about the utility issue in NFTs. Then about 6.7% said that the utility issue doesn't really affect their decision-making when buying NFTs. 

Long-term profits are the next major factor influencing people's decision to buy NFTs. A whopping 76.1% of respondents said long-term yields influenced their NFT sentiments. "Long-term profits ranked as the second most important reason for buying NFTs, with 3 in 4 NFT holders also intending to sell their NFTs at a higher price later on," the report said. Most intend to buy NFTs at a lower price and then sell them off at a higher price. But over the past two years, the NFT market has experienced some significant downturns. Many NFTs have gone down in value as traders leave the market. However, the industry is still expected to bang in the nearest future with a $230 billion value forecast by 2030.

The third reason people participate heavily in NFTs is to have some stake in decentralized projects. About 72.9% were motivated by the intention of gaining some stake in the NFT venture. "At least 7 out of every 10 NFT holders are motivated by the opportunity to gain a stake in the venture or decentralized autonomous organization (DAO)," the report said. 

Other Reasons for Owning NFTs 

Apart from the top 3 reasons the CoinGecko report lists, some other reasons influence people to buy NFTs. NFT sentiments are high, so NFT utility ideas don't only influence people. Many of the respondents have other reasons for investing in NFTs. Some aren't even doing so because they want to earn rewards. About 68.8% of the respondents claimed they are just interested in NFTs because they want to be part of the community. 

Another 71.1% said they were buying NFTs because they liked the technology it was built on. This is understandable as they are some really weird but expensive NFTs around. Other people are delighted because of the business model of the NFT industry. Around 67.9% of the respondents are in the NFT industry because of its business model. Short-term profits also influence people's decisions, as 66.8% are there to earn short-term profits. There are other people there who are buying NFTs to save their money, and about 59.5% of the respondents are there because they want to participate in disrupting existing industries.