Close to half of the surveyed non-fungible token (NFT) owners actively trade NFTs to earn profits, while the other half of holders mainly bought their NFTs either “to collect” or “for their utility,” according to a survey conducted by coin tracking site CoinGecko on Twitter.
The so-called NFT flippers, who – like traders – aim to buy low and sell high, were the biggest category of NFT buyers in CoinGecko’s survey, with 42% of respondents saying flipping was their main reason for buying.
The flippers were followed by NFT collectors, who made up 26% of the respondents.
Furthermore, those who said they bought NFTs for their utility, for example for use in a game, made up 25%.
Worth noting, however, is that fewer than half of the respondents said they have made a profit from their NFT trading, while 23% said they are ‘HODLers’ – or collectors – with no aim of turning a quick profit.
70% of respondents said NFTs are only a minor part of an overall crypto investment portfolio, making up between 0% and 25% of their portfolios.
Meanwhile, the survey also found that most NFT owners used the OpenSea marketplace to acquire their piece of crypto art. With close to 59% saying they used this platform, this result is notable given that competing platforms such as LooksRare, and even exchange-owned marketplaces such as Binance NFT and Coinbase NFT, have sprung up.
The survey further found that most NFT users still rely on the Ethereum (ETH) network for their trades, with 46% choosing it as the network they used. Ethereum was followed by Polygon (MATIC) and Solana (SOL) as the second and third most popular blockchain networks for NFT trading.
Lastly, CoinGecko’s survey report said that the most common way to look for new NFT projects is through either the social network Twitter or the messaging platform Discord.
The report described these tools as being “fragmented” and having relevant information “scattered among other noises,” but still said they appear to be “the best option to stumble across fresh-out-of-the-oven projects.”
For more specific tools, such as the aggregator platform Rarity Tools, the survey found usage to be low, with only 1.4% of respondents saying they used it.
After buying an NFT, the most common way to track the market value of the art piece is through tools available on the marketplace itself, rather than through custom-made spreadsheets or other tailored approaches, the report said.
CoinGecko’s survey answers were collected through a Twitter poll, and the number of participants varied between 394 and 874. The majority of respondents were from the Asia-Pacific region, which CoinGecko said leads in NFT adoption globally.