64% Of People Buy NFTs To Make Money – DEXterlab Study

Non fungible token Cryptocurrency NFTs can be used to commodify digital creations, such as digital art, video game items, and music files.

With the massive growth in popularity of non-fungible tokens (NFTs), the question has come up about whether it is worth investing thousands or millions of dollars into something that everybody can readily get for free on the internet.

The underlying technology of NFTs has turned them into a form of a commodity from which the users can derive some monetary gain. Based on findings of a new survey conducted on June 10 by DEXterlab and published by Finbold indicate that 64.3% of the 1,318 people who participated stated that the main reason they bought NFTs is ‘to make money.’

Based on the poll, the second-biggest reason why consumers buy NFTs is to join a community and then flex. For the around 14.7% of the survey participants, that is the main reason for buying some of the available nonfungible tokens.

64% of people buy NFTs to make money. Source: DEXterlab
64% of people buy NFTs to make money. Source: DEXterlab

Digital art collectors make up nearly 12.4% of the participants, while 8.6% of the people buy NFTs for the sole purpose of accessing games and tools, normally in the form of membership rights that offer access to the artists’ perks, projects, and tools to do everything else.

NFTs As A Viable Investment

The tokens that are not fungible, as their name suggests, cannot be traded in the same manner as cryptos. Demand and interest are powered by the unique qualities and varying degrees of scarcity that each of them has; normally, all these factors also have an effect on the value of the items.

For that reason, NFTs can be considered to be an investment that might later yield rewards in case you have a great understanding of the value of a specific digital asset and make some sound selections about your purchases.

Though the main reason why people buy nonfungible tokens is to make money, most of the NFT holders who participated in the study alleged that their tokens have not been quite lucrative so far with 58.3% of respondents.

58.3% of people who bought NFTs in a loss. Source: DEXterlab
58.3% of people who bought NFTs in a loss. Source: DEXterlab

Nonetheless, 41.7% of the participants confirmed that they managed to generate a profit from the NFTs that they had previously acquired.

It is factual that most people do not understand the value of NFTs and believe that there is no need to invest in them. However, there is demand in the market with global NFT trading volume growing more than 200% in 2022 exceeding $50 billion.

US NFT Trademark Applications Exceed 4,000 In 2022

As the crypto market grows, so does the NFTs space, which is interconnected greatly with cryptos, especially Ether. Notably, NFT-related trademarks in the US exceeded 4,000 from January 1 to May 31, 2022, based on the data and chart published by Michael Kondoudis, the trademark and patent attorney, on June 13.

Particularly, the precise number is 4,049, meaning that, on average, 27 new NFT trademarks were filed daily in 2022. Notably, Kondoudis’s tweet also compared data from 2021, where just 363 of the trademarks were filed with the U.S. Patent and Trademark Office (USPTO).

NFT-related trademark applications per month in 2022. Source: Mike Kondoudis
NFT-related trademark applications per month in 2022. Source: Mike Kondoudis

As for this year, the most productive month was March, when 1,023 new NFT trademarks were registered. January had only 637, becoming the lowest so far, while there were 743 new trademarks in May,  770 in February, and 876 in April.

Massive Growth In NFT Market

In mid-February, the number of NFT trademark applications in the United States was 1,263, translating into a 421-fold increase from just three filings in 2020. This current growth is 1,349 times more in comparison to the whole of 2020 and has exceeded the whole of 2021, despite 2022 being barely halfway gone.

Most Viewed Review

1 comment

Leave a comment

Your email address will not be published.