NFTs Adoption Slows Down Amid Weak Market Sentiment

NFT adoption is slowing down as market sentiment weakens, according to a recent study conducted by CoinGecko and lab_blockchain. The survey, which polled 438 users on their experiences with NFTs and cryptocurrencies between December 2022 and January 2023, found that the rate of adoption for N0n-Fungible Tokens has decreased compared to the previous year.

Survey Shows NFTs Remain Attractive to Newcomers

During the NFT bull market of 2021, around 40% of respondents invested in NFTs, with the majority acquiring their first NFT that year. However, the bearish market conditions in 2022 caused the price of NFTs to drop. It resulted in slower adoption rates. Nevertheless, the survey showed that 27.4% of holders obtained their first NFT in the past year. It indicates that NFTs remain attractive to newcomers despite the market’s state.

The study also revealed that once individuals develop a taste for NFTs, they tend to continue acquiring and adding to their collections. The majority of NFT holders have two or more NFTs, with just 4.8% holding a single NFT. This suggests that making the initial encounter with NFTs more convenient is crucial to the market’s development potential.

The Popularity of N0n-Fungible Tokens Continues to Rise with Expanding Variety of Initiatives

NFT adoption is aided by the availability of collections from popular businesses like Starbucks and Adidas, as well as frictionless NFT experiences similar like Reddit’s Collectible Avatars. The expanding variety of NFT initiatives that cater to diverse demographics and tastes also suggests that their popularity may continue to rise. N0n-Fungible Tokens have expanded beyond profile images into other digital and physical contexts. It is feasible that as NFTs develop to meet more purposes, their holders will turn into collectors.

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According to a recent survey, 2.9% of respondents said they bought their initial NFTs in 2017, which was the year when CryptoPunks and CryptoKitties were launched. Since then, NFT adoption has gained momentum with 9% of participants reporting they started investing in N0n-Fungible Tokens in 2019. This data suggests that the popularity of NFTs has been steadily growing over the past few years, indicating a potential for continued growth in the future.

The introduction of new NFTs in 2023, such as Bitcoin’s Ordinals and Stamps Non-Fungible Tokens, and blur_io surpassing OpenSea as the leading NFT marketplace, may sustain or even speed up growth this year. However, as the market sentiment remains weak, it remains to be seen whether the adoption rate of N0n-Fungible Tokens will continue to grow or slow down further.