Non-fungible tokens had arguably their best year yet. With 2021 coming to a close and the world preparing for a new year, Chainalytics conducted a study on OpenSea. The end of year analytics showed some interesting results.
One of the poignant concepts of NFTs is the decentralisation and cutting out of the middle man,among many concepts. An argument thrown about is that the people buying and profiting from NFTs are the investors. The ones who already have a healthy stack in their pockets. From the data collected, Chainalytics found that less than 1% of NFT purchases were by institutional investors who spent over $100,000.
“Anyone paying attention to the NFT market knows that investors have flocked in part because they believe they can achieve a high return on investment by purchasing NFTs,” the report said.
The largest demographic in the Chainalytics study were retail buyers. With 80% of NFT purchases bought for less than $10,000. Considering that the NFT market was the best performing group of digital assets this year, rising 42% as interest in the metaverse has surged. Winning whilst the majority of your customers are retail as opposed to investors is impressive.
Another eye-catching statistic is only 28.5% of NFTs bought during minting were sold to make a profit. This leads to the idea that over two-thirds of the buyers are sitting on them to catch a tasty profit, or that they are in fact, art lovers. Over time the statistics will evolve along with the technology. Once that happens we can understand how we use this technology and where the holes are.
NFTs proved their power over 2021 and are set to reach bigger and better targets next year.