MetaPoo creates real functional NFTs rather than collectibles. As a result, NFT market research is essential. The following is a brief report of the first phases in the current NFT market research of MetaPoo.
Purpose of the research:
In order to participate in the NFT market, MetaPoo conducted researches with the following particular outcomes:
- Current NFT Market width
- Market growth rate in the past and potential for future growth
- Case study of successful companies/individuals in the NFT market
- Identify NFT buyers and sellers
- User perception of NFT versus tangible assets
- Find out what users think about NFT: Is NFT a trend or a true asset?
Data availability
MetaPoo plans to roll out the research on a worldwide scale. However, the initial research will be conducted in the US, as this is the most convenient location for MetaPoo to begin the research process.
NFT Market size
The NFT market has truly blossomed in 2021 with a significant growth rate. The total sale of the NFT market was $13.7M in the first half of 2020, but from the beginning of 2021 to August, this figure reached $5.29B, a more than 3800% increase
These numbers indicate that the entire world has been paying close attention to NFT in 2021. In addition to a considerable number of new NFTs being born, the value of NFTs has also grown significantly in comparison to previous years. Hence, now the user no longer buys NFT for $100 to resell it for $1,000; they will buy it for $1,000 and resell it for $10,000 instead.
The average value of 1 NFT was approximately $150 in 2020 and increased to over $1500 by Q2 2021
In 2018, the number of active NFT wallets was 110551, and this number rose to 177048 by Q2 2021. Active wallets are the wallets that have interacted with an NFT Smart Contract. (data taken from the report above)
In 2020, there were about 74529 buyers and 31504 sellers, with a total transaction value of $250 million. In Q2 2021, this grew to 94830 buyers and 39709 sellers, with $754 million traded.
The market cap of the NFT market was only $338 million in 2020, and reached $43B by October 2021.
NFTs: Buyer Demographics
In May 2021, 40% of interviewees indicated they were “familiar” with the NFT, and up to 80% answered they were “aware”.
40% of those “familiar” with NFT said they would consider buying NFT, while 38% believe the NFT trend will last no more than 5 years. Despite this, they still think that NFT is worth investing in even though the trend may not last long.
Only 12% of those interviewed said they invested in NFT, but this percentage jumped to 27% if only Millennials were counted.
Among collectors, 22% said they owned NFT, and among those with annual income over $100k, 33% owned NFT.
As a result, it is clear that more and more individuals are becoming aware of and investing in NFT. Millennials are the ones who invest the most in NFT.
Summary
In the early stages of the research process, MetaPoo identified the overall picture of the NFT market.
In 2021, the NFT market has grown explosively in all aspects, making the concept of NFT more widely recognized, particularly in the United States.
Although there are many participants involved in NFT investment and trading, Millennials make up the largest proportion. This is the generation that has access to Blockchain in the age of starting growing up and working. Thus, they have a highly positive view of Blockchain technology in general and NFT in particular.
