Report: Transaction volume in the NFT space is expected to grow to approximately $800 billion in the next two years

Although NFTs have been a part of the cryptocurrency market since 2014, interest and adoption have risen rapidly over the past two years. During the peak period in August 2021, the total transaction volume of NFT rose to more than 5 billion U.S. dollars, launching a short-lived "NFT summer".

According to a report by Coingecko, the transaction volume of the NFT market is expected to exceed $800 billion in the next two years. The report mainly surveyed investors from the Asia and Pacific region. Among the 871 respondents, about 72% already own NFTs, and more than 50% claim that they own 5 or more.

On the investor side, the report showed a balance between generations, with 43.6% of respondents aged 18-30 and 45.2% aged 30-50.

While most of the volume in the NFT market appears to be concentrated in popular series like BAYC and CryptoPunks, 35.8% of respondents said they were interested in NFTs related to earn-play and metaverse games, with 25% Participants indicated that they prefer artistic NFTs.

The report emphasizes: “The transaction volume in the metaverse field is expected to grow to about 800 billion US dollars in the next two years, and games seem to be the most likely entry point to enter the NFT market.”

Although TeleGeography data shows that there are more than 7.1 billion active mobile devices worldwide, PCs are still the first choice for NFT trading and casting, and 60% of investors use PCs. The response rate for mobile devices was only 21%. “This can be attributed to the ease of using a PC to browse time-sensitive NFT minting/transactions,” the report highlighted.

When it comes to tracking new or upcoming NFT projects, 60% of respondents said they prefer to use Discord and Twitter. Lowest prices also appear to be important to perceptions of value. The report shows that when it comes to evaluating before purchasing NFTs, most respondents (38.5%) are interested in floor prices, and only 23% and 21.8% choose "strong community" and "artistic value/belief" respectively.

On the other hand, most market investors indicated that they are not interested in selling NFTs. More than 50% of the respondents emphasized that they have a long-term holding (HODL) mentality and believe that non-homogeneous tokens may become important props in games in the future. Even with all the hype, NFTs make up only a small portion of most cryptocurrency portfolios, with 70% of respondents saying they make up only 0-25% of their cryptocurrency portfolio.

According to the report, most of the NFTs held by respondents are still on Ethereum, accounting for 46.3%. In second place is Polygon (13.8%), followed by Solana (13.5%). Combined, other smart contract platforms accounted for 26.4% of the NFTs traded by Coingecko respondents.

On the market side, the data confirmed the dominance of OpenSea, which was responsible for 58.7% of transaction activity. Second-ranked Solana has a market share of just over 10%, while LooksRare has less than 4%.

“Interestingly, Crypto.com, VEVE Official, and Immutable X were the examples that respondents placed the most among the “Other” options, perhaps suggesting that their status is on the rise. On the other hand, LooksRare and X2Y2, despite launching generous Incentive programs and early success, but failed to build user stickiness,” Coingecko pointed out.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.