Last Updated: 13 June 2022
A DEXterlab poll shows that 64% of NFT holders have an NFT “to make money”. This is a high percentage that will fall away when Non Fungible Tokens lose their ‘hype’ value. Is this digital form of ownership doomed to fail?
Only 42% made a profit
The buying and selling of NFT is also known as ‘flipping’. This is done by people who see the quick money in these tokens, but in reality it is often different. It turns out not to be very profitable as more than half of the buyers make a loss when flipping. This is what the DEXterlab poll shows.
Why do you buy NFTs?
— DEXterLab (@Dexterlabdata) May 27, 2022
The company questioned more than 1,300 Twitter users about their NFT buying behaviour. It showed that – despite a majority wanting to make a profit from their NFT trading – only 42% actually made a profit.
Only between 50 and 500 dollars
The second reason for buying an NFT was to be part of a community and “to flex”. This accounted for about 15%. “Humans are highly social creatures, so the desire to be part of a community and flex is not really surprising,” DEXterlab wrote.
How much I'm comfortable spending on an NFT?
— DEXterLab (@Dexterlabdata) May 31, 2022
NFTs became super popular in the past year, partly due to successes like the Bored Ape Yacht Club, which are now selling for bizarre prices. Although some NFT collections sometimes sold for thousands of dollars each, almost half of those surveyed said they only dealt with NFTs worth between $50 and $500.
NFTs were more popular than crypto
Despite the very big hype in 2021, there is less and less interest in NFTs worldwide. Data from google shows us that NFTs were more popular than crypto last year. This has since been reversed and the hype is declining.
The percentage that trades in NFTs to make money is getting fewer and fewer opportunities as a result. Perhaps there will be another hype cycle, or another project that becomes as popular as the Bored Ape Yacht Club. But until then, this interest is waning.