Consumer perception of NFTs is declining – Ledger Insights

A survey by Variety magazine in July found that consumer perception of non-fungible tokens (NFTs) has declined, particularly among those who have not purchased one. The majority of non-owners believe NFTs are a bad investment, with only 15% believing they make a good one. The rest had a neutral view.

However, the perspective on NFTs is dramatically different for those who own one. Two-thirds think it’s a good investment, and only 5% think it’s a bad one.

But the views of the non-owners may have a more significant impact on the market’s future, given that only 13% of respondents currently own NFTs.

In the early 90s, Geoffrey Moore created the concept of Crossing the Chasm. A new product must appeal beyond a small group of innovators and a larger group of early adopters to become mainstream. Notably, on average, early adopters make up 13.5% of the market. So the big question is whether NFTs have crossed the abyss or not.

Maybe they have too some demographics. Not surprisingly, the 15-29 age group sees the most penetration, with a quarter owning an NFT. The figure for the 30-44 age group is somewhat lower, with a dramatic drop among the elderly. While ownership has remained steady in the youngest group, it has fallen slightly across the others over the past six months. However, the numbers may not be significant given that the survey conducted by GetWizer includes around 1,000 people.

For NFT organizers, the more worrying aspect was a slowdown in the big picture. For example, in January the survey found that 58% thought NFTs were a transformational concept, but that figure has now dropped to 44%. Similarly, 59% of people currently believe NFTs will be around in five years, down 12 percentage points.

Awareness of NFTs is at an all-time high of 57%, compared to just 35% a year ago.

Since the crypto crash got into full swing in May, dollar sales figures have dropped from $3.1 billion in May to $647 million in July, according to CryptoSlam. However, the transaction figure only decreased by 12%, reinforcing the positive outlook from those already active in the sector.

Before the NFT boom got into full swing, some in the sector predicted that the future of NFTs was like rewards. Lately, we’ve certainly seen a shift to greater use of NFTs that involve “membership” without calling it a loyalty club.

While Variety looked at the market from an entertainment perspective, the reality is that NFTs already have many sub-sectors. For example art, music, sports, games and more. Much of the big money goes to sports rights. UK Premier League football is likely to announce an NFT deal soon. If sentiment falls, so can the amount paid for rights.