Survey claims NFT flipping not so profitable for more than half of buyers
While the majority are down in their NFT purchases, there are signs that point to a healthier and stronger market in the long run.
With the growing popularity of nonfungible tokens (NFTs), many have resorted to “flipping” these assets as a trading strategy. In a recent survey, about 64% of people said that the main reason they bought NFT was to “to make money.”
DEXterlab, a blockchain monitoring software company, received more than 1,300 votes on Twitter from late May to early June about their NFT buying habits. The majority of NFTs have made less than 42% profit so far, according to the results, despite seeking to make a profit from trading.
The second most cited reason for buying an NFT is the approximately 15% response that it should be part of a community and be “to flex”.
DEXterlab wrote, “People are highly social creatures, so the desire to be a part of a community and show off isn’t really surprising.”
The team highlights the success of the Bored Ape Yacht Club (BAYC), which has celebrities in its ranks and exclusives such as access to holder-only events or new popular NFT drops.
Although some NFT collections, such as BAYC’s, often see floor prices in the tens of thousands, nearly half of respondents said they feel comfortable paying a small price between $ 50 and $ 500 for just one NFT.
Surprisingly, in the second most popular answer, a quarter of respondents said they were willing to spend the upper limit of the poll, more than $ 2,000 per NFT.
In the last 30 days, some of the biggest “blue chip” NFT collections like CryptoPunks, Mutant Ape Yacht Club (MAYC), BAYC and Moonbirds have seen their floor prices or market cap halved. Nevertheless, these collections topped the chart for top NFT sales in the same period.
Although NFT prices have fallen across the board, there are examples of NFTs that have defied the prevailing bear market.
Recently, a free-to-mint collection without any utility or roadmap called Goblintown topped the charts and has since been in third place in 30 days with a volume of around $ 70 million.
Currently, the collection floor price of 3 Ether (ETH), or about $ 4,000 at the time of writing, and the most expensive 1 sold 77.7 ETH on June 1, valued at about $ 151,000 at the time.
Other signs point to a healthier market for those who are still waiting for a profit from their NFT buys. According to a recent DappRadar report, NFT’s sales volume reached $ 3.7 billion last month, despite market conditions.
The report also reveals that Solana NFTs posted their best trading month in the network’s history, generating $ 335 million in volume across all marketplaces – a 13% increase since April.
NFTs continue to build a strong market for themselves and are gaining widespread support. According to a CoinGecko report, the NFT market is expected to transact more than $800 billion in the next two years, although holders will have to wait a little longer to realize their profits.
