Although the acceptance of cryptocurrencies continues to increase worldwide, many people have not yet been able to benefit from the investments made. The volatility of cryptocurrencies also affects digital assets such as NFTs. A survey conducted by DEXterlab showed that 58.3% of respondents actually experienced losses by investing in Non Fungible Tokens (NFT).
The survey of 1,200 Twitter users showed that only 41.7% of respondents have seen a return on their NFT investment to date. Because the NFT market is also affected by the volatility of cryptocurrencies.
Several digital collections, which dominate the digital asset market, also experienced a decline in value. According to data from CoinGecko, the minimum price for Bored Ape Yacht Club (BAYC) NFTs is currently 75 ETH. Last month, the minimum price for a BAYC-NFT was 98.90 ETH. The Mutant Ape Yacht Club (MAYC) NFTs were not spared either. The minimum price fell to 14.2999 ETH from 20.18 ETH last month.
But it was not only the reserve price of these popular NFTs that experienced a decline. The ETH price also fell by almost 50% from $ 2,040.60 per ETH token to $ 1,231.50 per token in just one month. This shows that movements in the ETH price have a direct influence on the minimum price of the digital assets.
Despite the current decline in value, 64.3% of respondents said they had purchased an NFT during this time to use it surplus to obtain. 14.7% of respondents admitted to investing in NFTs to be a part of one Community to become. A further 12.4% of respondents see NFTs as digital art objects and want the NFTs as art collect.
Interestingly, the study shows that games that offer digital tokens in the game are still getting some attention. Only 8.6% of respondents bought NFTs to be able to use them in games.
$ 500 to purchase NFTs
It is nothing new that some NFT projects are getting exorbitant prices. For example, the artist PAK’s digital asset The Merge was sold for $ 91.8 million. But according to the DEXterlab survey, 48% of NFTS spending is limited to between $ 50 and $ 500.
A quarter of respondents reported spending more than $ 2,000 on buying NFTs. 15.2% were willing to pay between $ 500 and $ 1,000 for NFTs and a further 11.4% set aside between $ 1,000 and $ 2,000 for NFT investments.
The NFT market is unique
The digital asset market has its own rules and is therefore unique. Since 2014, the market value of Non Fungible Token (NFT) has grown significantly with the introduction of cryptocurrencies in many countries.
Jeffries Investment Bank raised its forecast for the market value of NFTs to more than $ 35 billion this year and believes it could rise to as much as $ 80 billion by 2025. According to a Bloomberg report, the market value has already exceeded $ 40 billion in 2021.
Yuki Terase, co-founder of Art Intelligence Global, is also convinced that NFTs will change the way we consume and share art.
“The movement comes mainly from young people in Asia who collect NFTs as works of art.”
The collection of digital assets is compared by some to the traditional art market. It is therefore not surprising that digital works are also sold at exorbitant prices.
Global Data’s George Monaghan adds that both the traditional art market and the art market in the digital space are unique and valuable.
“To make NFT investments in the digital space, investors need the same flair that they do with traditional art.”
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