NFT sector propelled to move around $800 billion by 2024: Coingecko

Fueled by the rising interest in metaverse and gaming, the non-fungible-token (NFT) sector is projected to move around $800 billion by 2024, says a new report by crypto market tracker Coingecko. NFT trading volume hit $5 billion at its height in August 2021, however, since then the NFT market has tapered off slightly but it is still one of the hottest buzzwords in town and continues to grace headlines.

According to a survey conducted by CoinGecko, out of the 871 respondents, almost 72 per cent of them are owners of NFTs, with more than half of them having 5 or more NFTs. Over 45.2 per cent of the users from age 18 to 30 own NFTs followed closely by 43.6 per cent, between 30 to 50 years old.

Metaverse and gaming NFTs are the most owned collections, 35.8 per cent, followed by a relatively even split between PFPs (27.4 per cent) and Art NFTs (25.3 per cent).

The survey further revealed that half of the respondents are ‘HODLing’ the NFTs, believing that the prices of NFTs will boom in near future. Meanwhile, less than half of the respondents (43 per cent) have profited from NFT trading, while 23 per cent are HODLers by choice with no regard for making profits off NFTs.

Additionally, the report highlights that the 38.5 per cent respondents  cite “Floor Price” as the most important for crypto trading. The floor price is a common metric used to gauge affordability and potential upside of a collection/piece.

NFT collector are also influenced by the rarity index and influencer endorsement to certain extent—30 and 18 per cent respectively. The rarity index ranks an NFT based on how rare it is, making it easier for users to choose the right NFT.

“NFT owners value NFTs that are perceived to deliver the most ‘practical’ value, rather than intangible qualities such as its aesthetics. Recent NFT projects are also trending towards having some form of utility (e.g. exclusive access, future airdrops), instead of being just “onchain JPEGs”, the company added.