More global consumers are drawn to the blockchain technology and cryptocurrencies due to the popularity of non-fungible tokens (NFTs)whose trading volume has increased significantly, says a report titled ‘New Value Crypto Trends in Business and Beyond-2022,’ published by cryptocurrency exchange Ripple (XRP).
According to the report, people in “Asia-Pacific (APAC) and Latin America (LATAM) are more optimistic about the value of blockchain and its tokens.
While the Middle East and Africa (MEA) and North America were somewhat less enthusiastic, Europe was the most conservative.
However, the report said the consumer experience was not smooth due to Web2.0 infrastructure and design issues.
Ripple surveyed over 800 people in 22 countries across Asia-Pacific (APAC), Latin America (LATAM), North America, Europe and the Middle East and Africa (MEA).
Here are some interesting highlights about consumer feedback on NFTsmetaverse, central bank digital currency (CBDC), etc.
Global NFT Trends
Consumer interest in NFT higher in the APAC region
The report noted that “respondents in APAC were up to three times more likely than respondents in other regions to say they would like to purchase a NFT to commemorate an important moment. And they were twice as likely to say they would buy an NFT to show their appreciation for an artist, pop figure or brand.”
This “suggests that the emotional attachment to creators and/or moments will be an even bigger driver of NFT interest in APAC than in other parts of the world.”
NFT key technology in Metaverse
The report finds that NFTs are widely used and “key technologies for driving ownership in the so-called metaverse.” Metaverse is a 3D animated virtual world that offers people an immersive social, gaming and entertainment experience.
The report further notes that whether virtual land, a car, or an NBA star’s virtual sneakers, “NFTs represent ownership of unique forms of value in the metaverse.” And people can “do things like trade, play, show off, post collateral and lend” with this value.
Therefore, the trend shows that “NFTs in the metaverse provide different values to people for varied activities,” and that is why it is a crucial technology.
Functional interests score above emotional reasons
Globally, consumers are “more interested in what we might call the functional benefits of NFTs as opposed to the more emotional benefits.”
Functional reasons to buy an NFT include trading, unique experiences and value appreciation. Emotional reasons include purchases to show appreciation for specific pop culture, artists, and brands.
“Fifty percent of respondents said they would only buy an NFT for a functional reason. This compared to 45 percent of respondents who said they would buy an NFT for an emotional reason,” according to the report.
Music is the most popular NFT genre
The report finds that 55 percent of consumers would be interested in purchasing music-themed NFTs, followed by collectibles at 43 and games at 41 percent. Sports and art came fourth and fifth with 39 percent and 33 percent respectively, favoring them.
“It will be interesting to see in the coming years whether and how the metaverse changes consumer interest levels across these categories and perhaps introduces new categories,” the report says.
Trend for increasing NFT trading volume
Ripple noted that trading volume in NFTs increased by a whopping 38,000 percent between 2020 and 2021, and over $10 billion worth of NFTs were sold in Q3 2021 alone.
It also notes that “artists, musicians, movie stars, athletes, brands and more are seeing NFTs as a new way to engage audiences with something innovative, unique and valuable.”
Opinion on current NFT technology
According to the report, most respondents believe that NFTs have great opportunities for innovation. The NFT technology at its core is not new, but an “ancient human desire to own things that connect us to our interests, passions and memories. The core technology is proven; now the industry needs to make it easier for consumers to participate.”
According to the report, new “approaches, including decentralized identity, will help address some key issues around trust, security and privacy for consumers, while making it easier to verify, buy, sell, store, transfer, display and use NFTs. “
