Two-thirds of investors are still betting on NFTs, despite the market decline

Among those planning to exit the nft market, 65.5% of investors intend to sell all of their nfts before exiting. This reflects a desire to completely liquidate their assets, with 65.5% committed to selling everything, 22.33% planning to sell only a portion of their nft collection, and 12.14% opting to keep their nfts, possibly with the hope of future profits despite his departure.

Furthermore, 72.3% of these investors plan to leave the market between now and 2026, indicating a clear timetable for their exit. Of this group, 36.4% intend to exit in 2024 and 35.9% in 2025, while 27.7% remain undecided, potentially waiting for market conditions to improve before making a decision. This suggests that while many have lost confidence, some are still weighing their options before leaving completely.

Reasons why investors continue to bet on nfts

For 56.97% of nft holders, profits are the main factor influencing their decision to continue investing in the market. Other motivations, although less common, also play a role in maintaining investor interest. About 19.8% of holders stay because of the practical utility and benefits that nfts offer, such as rewards or exclusive access to events.

Meanwhile, 10.76% of investors are motivated by a desire to support the nft community, finding value in shared interests and connections. Lastly, 12.47% of holders continue to invest due to their interest in nft art.

Earn profits from nfts

Among those focused on making a profit, most nft holders make money through a few key methods. Around 42.1% are dedicated to investing in nfts, where they buy low and sell high. Another 37.3% benefit from utility benefits, such as in-game rewards or digital assets, while 29.6% benefit from airdrops (free nft distributions).

Furthermore, 29.2% of investors create and sell their own nfts, and 22.7% choose to hold onto their nfts (HODL) in the hope of future increases in value.

Among profit-focused investors, 80.7% hold their nfts for long-term profits. On the other hand, only 19.3% They point to short-term gains, indicating that most investors are willing to wait for the market to mature and generate returns over a longer period.

Among people who choose to make long-term profits, 32.4% intend to invest in nfts for at least three more years. Meanwhile, 31.4% expect to keep their assets between one and three years, and 3.2% less than one year, while 31.4% are undecided about the holding time.

Among them, when nft prices fall, 69.68% of long-term investors choose to hold on to their nfts and wait for the market to recover, demonstrating their resilience and confidence in the future of the market. Meanwhile, 12.77% choose to sell some of their nfts during these downturns and 16.49% take advantage of the decline by buying more nfts.

Only a small fraction, 1.06%, decide to sell all their nfts in response to falling prices. This behavior suggests that long-term investors are less sensitive to short-term market changes and are more likely to continue investing.

On the other hand, short-term investors have different strategies. About 42.2% said they would sell their nfts and leave the market once their profits exceeded 20%.

Within this group, 6.7% aim for a profit margin of 10-20% and 28.9% aim for more than 50%. Meanwhile, 22.2% do not have a specific profit target, but rather decide based on market conditions. These short-term investors are more likely to exit the market as soon as nft prices rise to meet their expectations.

Utility and benefits of nft

Among those prioritizing the utility and benefits of nfts, airdrops emerge as the most important factor: 48.1% of investors indicate that the potential to receive free nfts contributes to their engagement with the market.

Additionally, 35.8% of investors value blockchain gaming items, which enhance their gaming experiences, while 43.2% appreciate the exclusive benefits and access that come with certain nfts. Additionally, another 35.8% of respondents recognize the appeal of real-world assets linked to nfts, which can add tangible value to their digital investments.

Supporting the nft community

For those who prioritize community support, shared interest in nfts and related projects is the main reason why 49.3% of investors join nft communities.

Additionally, 35.2% value making connections with like-minded people. Additionally, 15.5% turn to these communities for updates on industry news and events. This shows how being part of a community helps investors connect with other people who have similar interests.

Interest in nft art

Love for artwork design drives 47.2% of investors' participation in nft. Supporting their favorite artists is a reason for 11.1% of these investors, while 41.7% They are attracted to the uniqueness of certain pieces. This interest highlights how artistic appeal plays an important role in attracting investors to the nft art market.

Reasons why investors want to abandon nfts

About one in three investors consider exiting the nft market due to falling prices, with 33.5% cite this as their main reason.

Furthermore, 13.6% of investors feel discouraged by the lack of usefulness of nfts, while 12.1% point out the failure of large projects as a concern. Additionally, 17% are concerned about the rise in scams and fraud, and 23.8% have simply lost interest in nfts.

Loss of interest in nft

Of the people who have experienced a “Loss of Interest”, 55.1% feel that the enthusiasm around nfts has faded. Many believe that the initial enthusiasm is no longer present, leading to a decrease in their enthusiasm.

Furthermore, 16.3% of investors think that the projects currently available are not innovative or creative enough. As a result, 24.5% of them are exploring other areas that capture their interest more. Only 4.1% cited other reasons for their lack of interest in nfts. This trend shows how important continuous innovation is to keep investors interested in the nft market.

Increase in scams and frauds

When it comes to concerns about nft scams, more than half of respondents (57.1%) have not encountered any scam or fraud in the last six months; They have only heard of other people experiencing these problems. Meanwhile, 20% reported being involved in a scam and 14.3% experienced two or three scams.

Additionally, 8.6% said they had faced more than three scams. While most investors have not personally experienced fraud, knowledge of these risks can affect their overall confidence in the nft market.

Lack of usefulness in nfts

For those who feel that nfts lack utility, real-world assets are the most attractive benefit. About 71.4% of investors said the connection to real-world elements would encourage them to stay involved with nfts.

Other factors also play a role: 42.9% appreciate exclusive benefits and access, 35.7% are interested in possible future airdrops, and 28.6% are attracted to blockchain gaming items. This highlights that practical benefits are crucial to maintaining investor interest in nfts.

Failure of major nft projects

Of those people who are worried about the failure of large projects, 44% of investors reported that more than half of the projects they invested in have failed.

Specifically, 36% stated that between 30% and 50% of their investments were unsuccessful, while 12% experienced failures in between 10% and 29% of their projects. Only 8% reported that less than 10% of their investments failed. This indicates significant concern among investors about the reliability and success of nft projects.

Methodology

We conducted a survey with 943 cryptocurrency owners to collect information about your experiences with nfts.

In terms of age, 31.2% of our respondents are between 12 and 27 years old, which corresponds to Generation Z, while 52.5% are between 28 and 43 years old, which represents the Millennial generation. Additionally, 12.9% are between 44 and 59 years old, known as Generation x, and 3.4% are over 60 years old.

Regarding gender, 36.7% of participants identify as women, 62.7% identify as men, and 0.6% prefer not to reveal their gender.

Geographically:

• 42.2% are from America (North, South, Central America and the Caribbean)
• 11.9% are from Asia Pacific (Central and Southern Asia, Northeast and Southeast Asia, Australia and Oceania)
• 20.9% are from Europe.
• 25% are from the Middle East and Africa.

When asked about nft ownership, 65.2% of respondents confirmed that they currently own nfts. In terms of how long they have owned nfts, 14.1% have owned them for less than a year, 36.4% have owned them for one to two years, 29.4% have owned them for two to three years, and 20 % have owned nfts for over three years. .