NFT flipping not so profitable for more than half of buyers: Survey

by · July 5, 2022

With the growing popularity of non-fungible tokens (NFTs), many have taken to “flipping” these assets as a trading strategy. About 64% of people in a recent survey said that their main reason for buying an NFT was “to make money.”

Blockchain monitoring software company DEXterlab asked more than 1,300 people on Twitter about their NFT buying habits from late May to early June. Despite a majority wanting to win in NFT trading, less than 42% have earned so far, according to the results.

The second most cited reason to buy an NFT got around 15% to answer that it was to be part of a community and “to flex”.

“People are very social creatures, so the desire to be part of a community and show off is not really surprising,” DEXterlab wrote.

The team highlighted the success of the Bored Ape Yacht Club (BAYC), which has celebrities among its ranks, along with exclusive benefits such as access to events that only hold owners or new popular NFT drops.

Although some NFT collections, such as those at BAYC, can often see floor prices in the tens or hundreds of thousands, nearly half of respondents said they were only comfortable paying a modest price of between $ 50 and $ 500 for an NFT.

Surprisingly, the second most popular answer was a quarter of respondents who said they were ready to spend in the upper limits of the vote, more than $ 2,000 per NFT.

Over the past 30 days, some of the largest “blue chip” NFT collections such as CryptoPunks, Mutant Ape Yacht Club (MAYC), BAYC and Moonbirds have seen floor prices or market values ​​halved. Despite this, these collections have continued to top the lists of the best NFT sales in the same period.

Although NFT prices have fallen across the board, there are still examples of NFTs that have defied the prevailing bear market.

Recently, a free-to-mint collection without tools or roadmaps called the Goblintown topped the charts and has since stayed in third place over 30 days with nearly $ 70 million in volume.

Currently, the collection has a floor price of 3 Ether (ETH), or around 4,000 dollars at the time of writing, and the most expensive sold net 77.7 ETH on June 1, worth almost 151,000 dollars at that time.

Related: NFT holders can earn millions through IP rights, says Apocalyptic Apes founder

Other signs point to a healthy market for those who still persevere to make a profit on their NFT purchases. Sales volume for NFTs came in at $ 3.7 billion last month despite market conditions, according to a recent DappRadar report.

The report also revealed that Solana NFTs posted its best trading month in the network’s history, generating $ 335 million in volume across all marketplaces – a 13% increase from April.

NFTs continue to create a robust market for themselves and widespread mainstream adoption looms. According to a CoinGecko report, the NFT market is estimated to trade more than $ 800 billion over the next two years, although hodlers will have to wait a little longer to realize the profit.