The NFT sector is projected to grow by over $800 billion over the next 2 years

Bishal Kumar Chanda

Although non-fungible tokens have been a part of the crypto market since 2014, their popularity and usage have exploded over the last two years. At its peak in August 2021, total NFT trading volume crossed $5 billion, kickstarting the "NFT Summer".

The report highlighted that the NFT space is predicted to grow by over $800 billion over the following two years, and gaming appears to be the most likely entry point into the NFTs market.

CoinGecko Report Statistics

Meanwhile, the report mostly utilized investors from Asia and the Pacific. Furthermore, among its 871 respondents, about 72% of them own at least one NFT, while more than 50% of them hold five or more.

As for the investors, the report indicated a balance between the generations. Furthermore, it suggested that 43.6% were between 18 and 30, and 45.2% were between ages 30 and 50.

In fact, most of the NFT market seemed to focus on popular collections like Bored Ape Yacht Club and CryptoPunks. However, 35.8% said they were interested in play-to-earn NFTs, and 25% preferred art NFTs.

According to CoinGecko's Co-Founder and COO Bobby Ong, the respondents indicated that 'flip & earn' was their primary motive behind purchasing NFTs. However, 2/3 of respondents shared that NFTs made up less than 25% of their overall crypto portfolio. As for what would incentivize them to hodl NFTs, more than half said that some current or future utility would be the primary factor for holding.

According to TeleGeography data, more than 7.1 billion active mobile devices are already available. However, for 60% of the investors, a personal computer remains the preferred choice for NFT trading and minting. At the same time, mobile lags behind at 21%. "This can be attributed to the ease of using a PC to navigate time-sensitive NFT mints/trades." the report pointed out. 

For tracking new NFT projects, 60% of the investors prefer using Discord or Twitter. In addition, the minimum price of an NFT also appeared to be important for perceiving its value. When evaluating NFTs before investing, 38.5% were interested in the floor price, while only 23% and 21.8% chose "strong community" and "artistic value/attachment".

Meanwhile, Ethereum remains the dominant blockchain for NFTs for 46.3% of the investors. Polygon takes second place with 13.8%, followed by Solana with 13.5%. According to the respondents, all other NFT blockchains accounted for 26.4% of NFTs traded.

When it comes to the marketplace, the data confirms OpenSea's dominance, which accounted for 58.7% of trading activity. While Solana is in the second position with a 10% market share, LooksRare only has 4%. 

Interestingly, some of the most cited examples include, VEVE Official and Immutable X, indicating their growing prominence. Despite their generous incentive programs by LooksRare and X2Y2, they "failed to build stickiness despite early success," stated CoinGecko.

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