According to a July survey conducted by Variety magazine, consumer sentiments about non-fungible tokens (NFTs) have plummeted, particularly among those who have not purchased an NFT. Non-owners believe that NFTs are a bad investment, with only 15% believing that they are a good one. The rest, those who already own an NFT, were less unconcerned.
- Those who own NFTs, on the other hand, have a very different perspective on them. Only 5% think it’s a bad investment, while two-thirds think it’s a good one.
- However, given that only 13% of those polled currently own NFTs, the opinions of non-owners may have a greater impact on the market’s future.
Geoffrey Moore coined the phrase “Crossing the Chasm” in the early 1990s. This means to go mainstream, a new product must appeal to more than just a small group of innovators and a larger group of early adopters.
Notably, early adopters account for 13.5% of the market on average. The elephant in the room now is whether NFTs have crossed the chasm.
Perhaps they have for certain demographics.
Surprisingly, the 15-29 age group has the highest penetration rate, with one-quarter owning an NFT. The figure for the 30-44 age group is slightly lower, with an abrupt drop among the elderly.
While ownership has remained stable in the youngest age group, it has decreased slightly in the older age groups over the last six months. The figures, however, may be insignificant given that GetWizer’s survey included approximately 1,000 people.
The more concerning aspect for NFT promoters was a decline in the overall outlook. For example, in January, 58% of respondents thought NFTs were a transformative concept, but that figure has now fallen to 44%. Similarly, 59% of people believe NFTs will be around in five years, a 12 percentage point drop.
Fast fact: NFT awareness is at an all-time high, at 57%, up from 35% a year ago.
According to CryptoSlam, dollar sales have dropped from $3.1 billion in May to $647 million in July since the crypto crash began in earnest in May. However, transactions only fell by 12%, reinforcing the positive outlook of those already involved in the sector.
Before the NFT boom took off, some in the industry predicted that the future of NFTs would be as rewards or membership tokens that granted privileges to the owner. We’ve seen a recent shift toward greater use of NFTs involving “membership” without referring to it as a loyalty club.
Final thoughts
While Variety examined the market from an entertainment standpoint, the reality is that NFTs already have a plethora of sub-sectors. Art, music, sports, games, and other activities are examples of NFTs that have demonstrated utility and thus, value.
The majority of revenues are going towards sports rights as sports fans worldwide are a ready market for collectibles-be they traditional or NFTs. The Premier League in the United Kingdom is expected to announce an NFT agreement soon-despite the apparent collapse in NFT interest. If sentiment continues to fall, so may the amount paid for rights.
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