The shift to an NFT market is here. Sales volumes are soaring and conversations around NFTs are outperforming that of cryptocurrency.
With new markets come new audiences. To successfully tap into this new form of cash flow - you’ll need a deep understanding of who NFT buyers are and what motivates them to buy.
In this article Colormatics breaks down the history of NFT growth patterns, NFT buyer demographics and what motivates people to buy.
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How many NFT buyers are there?
The trading activity of NFTs tripled between July 01, 2021 and October 1, 2021. Topping out at more than 95,581 active wallets on nonfungible.com by the end of October 2021.
While the NFT buyers skyrocketed during recent months, the wheels of the NFT growth movement have been turning.
In late 2017, the first significant growth of NFT buyers began with the popularity of collectible CryptoKitties. After a rare kitty was sold for an extremely high price, people flocked to the game looking for their own rare kitty. The frenzy began for the same reason collectors pay large amounts for rare toys or books - scarcity in the market creates value.
In March 2021, media channels began reporting on one of the largest NFT sales to date. Digital artist Beeple sold an NFT of his work "Everyday: The First 5000 Days" for $69 million at Christie's.
The purchase of this NFT, especially through a very well-known auction house, is an indicator of how digital art may be acquired and traded in the future.
October 2021, global social media platform Facebook announced it was rebranding its company as "Meta." Meta intends to "bring the metaverse to life and help people connect, find communities and grow businesses."
NFT Buyer Demographics
Audiences within the NFT market continue to evolve with each historical moment. To date there are inferences we can make from early market indicators and US buyer statistics.
Google Source Trends indicate that the United States ranks 11th out of 65 regions regarding volume of keyword searches for NFT and non-fungible token topics.
Breaking this data down further, we can see granular results from states and cities that are leading the trend in this search term:
Top 5 states:
- New Jersey
Top 5 cities:
- San Francisco
- Los Angeles
- San Jose
- San Diego
It is no surprise that the search query results for non-fungible tokens and NFT exist within geographic tech hubs such as California and Austin, Texas.
Civicscience conducted a survey in April 2021 to learn how familiar the US population was with NFTs. The majority of people interested in NFTs (14%) are between the ages of 18 and 24. Followed by 25 - 34 year olds where 8% of respondents are interested in NFTs.
Data from Statistica shows that among the age group with the largest interest (18 - 34) men and women own NFTs fairly equally, with 24% men and 21% women.
It would be unwise to discount women in this market. The false conclusion that NFT is a male market happens when you include buyers 35+; who have less than 3% interest in buying an NFT.
Income gets interesting. The same civicscience survey shows those earning less than $25,000 (lower-income) investing in NFTs equal to those making more than $150,000 annually (upper-income.) Both of these demographics said they have invested in non-fungible tokens.
Middle income ($25,000 - $150,000) respondents were the least interested with up to 94% not interested in non-fungible tokens at all.
So, who is buying NFTs?
Recent survey data and Google trends indicate that a young, tech-savvy audience with disposable income dominates the NFT buyer market.
What Motivates People to Buy NFT
There is no guarantee that an NFT purchase will increase in value. On the contrary, it may actually decrease in value.
So why do people buy NFTs? Is it the thrill of the investment? The desire to own a unique digital object that none else can claim? Or maybe it is the excitement of new technology.
While NFT buyers represent a niche demographic of collectors, it’s important to note that their wants and needs are still developing and we are always uncovering what motivates the frenzy of NFT purchasing. Here is what we do know.
NFT flippers want to be the first to know about the next hot project and you can bet they are there for the drop. A flipper will try and purchase one of the limited items and then turn around and sell it for a higher price.
The NFT flipper is motivated to buy low and sell high. Getting their hands on a highly sought-after NFT and turning it around to sell for a profit is all a part of their strategy and they will be the early bird every time.
Profit is not always the motivator of an NFT purchase. Collectors want a coveted historical piece. This NFT buyer loves everything cool, novel or interesting.
This is evidenced by a survey done by civic science, where 41% of the survey respondents stated that if they purchased an NFT, they didn't expect it to grow in value. Indicating that the act of buying the item was not a financial investment decision.
NFT early adopters were primarily millennials who were already involved in Cryptocurrency and defined themselves as "crypto artists."
This was an organically grown community of video game artists and people working in the design & illustration field. Very similar to collectors today, early adopters purchased NFTs with the purpose of financially supporting artists and art they loved.
Learn more about the Millennial Buyer Persona.
Early mainstream buyers saw a benefit in purchasing NFTs and rushed to cash in on the spoils. This is when the NFT audience took a significant turn from grassroots effort to new entrants interested in music, sports, and collecting fine contemporary art.
Very similar to flippers, this audience is interested in investing. They see NFTs as the future and want a piece of this new market.
Big brands and celebrities entering the NFT space are going to bring another new wave of buyers to NFTs.
Brands including Taco Bell, Coca-Cola, Microsoft and Nike have tapped into this entirely new revenue stream. And, stars like Mila Kunis, Snoop Dogg and Tom Brady are buying and creating NFTs.
This is prime time for brands to step into the current NFT market to interact with and better understand their audience in this emerging digital market.
NFT Audience Key Notes
The NFT buyers market is growing and evolving. As a business looking to tap into this space, you must have a deep understanding of how to target NFT audiences. Here’s a wrap-up of the current core characteristics:
- Tech Hubs: California and Austin, Texas
- Young: 18 - 34 year olds
- Disposable Income: $150,000+
- Understand Cryptocurrency
- Collectors or Investors
NFTs are More Than a Pieces of Art
NFTs are more than just pieces of art – they are collectibles with a real-world value that can be used as digital assets. For example, NFTs can represent tickets to events, limited edition video game items, access to exclusive content, and even virtual real estate. The potential uses for NFTs are virtually unlimited, and they are becoming increasingly popular as a way to store value, create digital records of ownership, and even provide access to unique experiences. As the NFT market continues to grow, it’s likely that more people will become interested in acquiring them for a variety of reasons beyond just art.
Top NFT Stats
NFTs have been gaining traction rapidly in recent months and the numbers are impressive. According to a report by NonFungible, NFTs hit a market cap of $1.3 billion in October 2020, up from just $50 million at the beginning of the year. The report also revealed that the number of NFT buyers has grown over 500% in the same period, with more than 3 million new users flocking to platforms like Ethereum and OpenSea.
Another key statistic is that the average purchase price for an NFT surged from around $20 in 2019 to nearly $200 in 2020. This shows just how quickly the market is maturing, with buyers now willing to pay more for higher-quality content. Finally, the report found that the top 1% of NFT wallets hold 70% of all NFTs in circulation – demonstrating that the market is still dominated by a few high-net-worth individuals.
Mobile Accessibility Drives Web Traffic on NFT Marketplaces
Mobile accessibility continues to be a key driver of web traffic on NFT marketplaces. According to NonFungible, mobile users accounted for more than 85% of all visits to major NFT marketplaces in 2020. This shows just how important it is for companies looking to reach potential buyers with their content or services – having a well-designed mobile experience is essential. Mobile accessibility also makes it easier for users to browse, buy, and trade in the NFT marketplace without having to be tied down by their computers.
Art Sector NFT Statistics
Between August 15th, 2021 and August 15th, 2022, total NFT art sales increased to around $1.7 million. This year saw over $500k in first-time sales alone. Secondary NFT Art sale made up the remaining $1.28 million of total revenues. The trend of NFT art is on track to continue into 2021. Between July and October 2021, sales have seen several highs, with peak sales occurring from August 9th to September 2021. Since the year 2000, NFT sales have reached over 11 million - indicating the rapidly growing online art industry. In fact, compared to 2013 and 2018 online art sales have increased by more than 16%, with over $1 billion worth of art being purchased online in 2013 alone.
The U.S. is the Largest Audience Base for NFTs So Far
According to Reuters NFT research, the US is currently leading the top 10 countries worldwide for web traffic at 19.6%, followed by Canada (42.8%), Britain (33.91%), Turkey (33.66%) and India (33.33%). This could be attributed to American-based NFT marketplaces such as OpenSea, which operates primarily in New York City. Additionally, a large number of American artists have contributed to the popularity of NFTs with notable projects such as Beeple’s sale of an NFT for 696.3M. While the US is currently the largest audience for NFTs so far, there is still work to be done in order to make NFTs mainstream commodities.
What Influences The Value Of NFTs?
The value of an NFT is largely determined by its popularity and scarcity. High-quality artwork, limited edition pieces, and works with exclusive access all typically carry a higher price tag than common items. The uniqueness of an NFT also influences its value, as collectors may be more drawn to rare digital assets that are not widely available. Celebrity endorsements and influencers’ support are also important factors in determining the market value of an NFT. Lastly, the type of marketplace where it is sold can influence its worth – as different platforms may feature different pricing structures.
How Can You Determine NFT Rarity?
To determine the rarity of an NFT, it’s important to look at its circulation and how many people are interested in purchasing it. A limited edition piece or artwork with exclusive access would be considered rarer than a common item that has been widely circulated. The number of copies available is also an important factor when it comes to determining how rare an NFT is. For example, a 1-of-1 edition of an artwork would be much more valuable than one with 50 copies. Additionally, it’s important to research the artist and take into account the popularity and hype surrounding the project to estimate the true value of an NFT. Knowing the history behind each piece can also help you determine its rarity. For instance, a piece created in collaboration with a renowned artist or for an important cultural event may be more desirable and thus more valuable than one without any special connotations attached to it. By understanding the factors that influence rarity and desirability, collectors can make informed decisions when purchasing NFTs.
There are a number of tools available to help determine the rarity and value of an NFT. CryptoArtMarket is one such platform that provides users with analytics on the most popular artworks being bought and sold in the crypto art market, as well as data on artists’ performances over time. Additionally, platforms like CollectibleX provide up-to-date pricing information for artworks on the blockchain. Lastly, Rarebits is a marketplace that allows users to browse and purchase pre-vetted NFTs from top artists from around the world. With these tools, collectors can get an insight into what’s trending in the industry and make informed decisions about their investments.
Which Countries Have the Most Interest in NFTs?
NFTs have become popular all over the world, with notable projects originating from countries such as India, China, and Brazil. According to recent research from CryptoDiffer, the top 10 countries for web traffic related to NFTs include the United States (19.6%), Canada (42.8%), Britain (33.91%), Australia (26.3%), India (25.4%), China (22.7%), Russia (21.6%), Mexico (14.1%) and Brazil (13%). Other countries with high levels of interest in NFTs include Germany, France, Italy, Japan, and South Korea. The US remains the leader in terms of both sales volume and the number of users interested in NFTs.
Biggest NFT Collectors
One of the most notable NFT collectors was the digital artist known as Beeple (real name Mike Winkelmann), who had made headlines when his NFT artwork sold at auction for a staggering $69 million. Beeple himself had also become a collector of NFTs from other artists, amassing a collection worth millions of dollars.
Another prominent NFT collector was the entrepreneur and investor Mark Cuban, who had been an early and vocal proponent of NFTs. Cuban had reportedly invested heavily in a wide range of NFTs, from digital art to virtual real estate, and had even launched his own NFT marketplace.
In addition to individual collectors, there were also several NFT-focused investment funds and companies that had emerged to buy and trade NFTs on a large scale. These included firms like NFT Investments, which had raised millions of dollars to invest in NFTs, and platforms like OpenSea, which had quickly become one of the largest NFT marketplaces on the internet.
How Mainstream Are NFTs in 2023?
NFTs have continued to gain traction in 2023 and are now mainstream. According to CryptoDiffer, the total value of NFT transactions has grown significantly, reaching more than $2 billion by April of 2023. The total number of daily active users on Ethereum-based NFT marketplaces has also increased exponentially – hitting over 1 million in April of 2023.
This surge in popularity has been further bolstered by the success of big-name projects such as NBA Top Shots and CryptoPunks, which have demonstrated the potential for NFTs to create significant value for users. As more established companies move into the space, it’s likely that NFTs will become even more popular.
In addition to the increase in sales volume and user activity, NFTs have also gained acceptance from mainstream organizations and institutions. For instance, the International Monetary Fund recently announced plans to create its own digital asset backed by gold, signaling that financial institutions are beginning to take notice of blockchain technology and NFTs. With increasing acceptance from the traditional financial world, it’s likely that NFTs will continue to gain mainstream appeal in 2023 and beyond.
Has Interest in NFT Games Changed Over Time?
Interest in NFT games has grown steadily over the years. According to CryptoDiffer, the number of users playing NFT-based games on the Ethereum blockchain increased from around 100,000 in 2020 to more than 1 million by April 2023. This growth is largely due to the success of projects like Axie Infinity and Gods Unchained, which have each attracted millions of users and driven a surge in NFT transactions.
As the popularity of NFT gaming continues to grow, developers are incorporating more features into their games. These include advanced gameplay mechanics such as blockchain-enabled tournaments and player versus environment (PvE) challenges, as well as cross-game item trading and other innovative features. The success of these projects has demonstrated that NFT games have the potential to become as popular as traditional video games, which could pave the way for even more growth in the coming years.
AI in NFT Market
As the NFT market continues to grow, Artificial Intelligence (AI) is playing an increasingly important role in helping users make informed decisions. AI-powered tools allow users to quickly identify trends in the market and see which projects are gaining traction. Additionally, AI can be used to analyze buyer behavior and provide insights into what motivates people to purchase NFTs. This data can be used to help developers create better experiences for their users, as well as improve the overall user experience of the market. As AI-powered tools become more sophisticated and accessible, it’s likely that they will play an even larger role in the future of the NFT market.
Best AI tools Being Used to Create NFTs
Today, some of the best AI tools being used for NFTs include DataDash’s AI-powered crypto signals and CryptoTerra’s trend analysis tool. These tools provide users with real-time market insights so that they can make better decisions about which projects are worth investing in. Additionally, CryptoTerra’s tool can be used to identify new projects that have potential for growth. As AI-powered tools continue to evolve, they will become more accessible and useful to users in the NFT market.
Determine The Best Channels To Communicate With Your Audience
In order to effectively communicate with NFT buyers, it is important for businesses to determine the best channels to use. With a large and diverse audience, companies should explore various options in order to reach their target market. Social media platforms such as Facebook, Twitter, and Instagram are great ways to engage with users who may be interested in buying NFTs. Additionally, NFT-focused forums and discussion platforms are also great channels to reach out to potential buyers. By utilizing the right channels, businesses can ensure they’re reaching their target audience in the most effective manner possible. Learn more about How to Create Engaging Instagram Videos: Tips & Tricks for Marketers.
Is Twitter is the Best Platform for NFT Marketing?
Twitter is one of the best platforms for NFT marketing due to its ability to broadcast information quickly and widely. The platform is also becoming increasingly popular in the cryptocurrency space as a place to share news, announcements, and insights with potential buyers. Twitter makes it easy for users to engage with content related to NFTs by creating conversations around topics and trends. In addition, Twitter is home to some of the most well-known influencers in the crypto space who can help spread awareness about NFTs and drive sales. For all these reasons, Twitter is one of the best platforms for NFT marketing.
NFTs and the Metaverse Statistics
As the NFT market continues to grow, it is becoming increasingly intertwined with the Metaverse. According to NFT Stats, more than $1.2 billion worth of NFTs has been sold on Ethereum’s blockchain over the past 12 months, with an estimated 300 million transactions taking place in that period. The majority of these transactions were related to the purchase of digital art, clothing, and other collectibles that inhabit the Metaverse. This data demonstrates just how significant NFTs have become in the virtual world, and how important it is for businesses to understand this rapidly growing market.
Things To Know About NFT Marketing Efforts
In order to be successful in the NFT market, businesses need to keep a few key points in mind when launching their NFT marketing efforts. First, it is important for companies to ensure that their NFTs are built on top of a trustworthy blockchain. This will help to ensure that users can trust the product they are buying and the transactions that occur. Additionally, businesses should research the market to get a better understanding of buyer behavior and preferences in order to create an effective marketing strategy catered to their target audience. Finally, businesses should also ensure they are leveraging the right channels and platforms to reach their potential buyers. By keeping these points in mind, companies can ensure success when launching their NFT marketing efforts.
Choosing The Popular NFT Marketplaces
The NFT market is vast, and there are a variety of different platforms offering NFTs available to buyers. When choosing the right marketplace for your business, it’s important to consider factors such as features offered by the platform, user experience, trustworthiness, and transaction fees. Additionally, take into account the size of the community on the platform, as well as the availability of support for new and existing users. Additionally, it’s important to research the platform's history and reputation, as this will help you make an informed decision about which platform is best for your business needs.
Here are some of the most popular and trusted platforms for buying and selling NFTs:
- Decentraland Marketplace
- Nifty Gateway
- Axie Infinity
- Bondly Exchange
- NFT Showroom
Develop An Attention-Catching Teaser For Your NFT Project
When marketing your NFT project, it’s important to create a teaser that will grab the attention of potential buyers. This can be done by creating an eye-catching image or video that showcases the project in an exciting and engaging way. Additionally, be sure to include key information about the project such as the purpose of the NFT, the benefits of buying it, and how it can be used. Finally, make sure to include a call-to-action that encourages potential buyers to learn more about the project. By following these tips, you can create an attention-grabbing teaser that will help boost interest in your NFT project.
We know that good impressions can have a positive effect on people. You want to have an easy and pleasant initial experience with your NFT and create the feeling that you need it urgently. Your Teasers can appear in almost every digital format, though video marketing was more successful with social media last week. Artists are by nature content producers and NFT users expect beautiful content from their projects. Content is a preferred medium for NFT artists, as is standard. Shared content is your chance to demonstrate creativity beyond digital art.
What NFT Should I Buy?
When it comes to buying NFTs, there are many factors to consider. First and foremost, you should consider the value of the NFT. Some NFTs are worth millions of dollars, while others are more affordable. You should also consider the artwork or asset that the NFT represents. Is it something that you personally find valuable or interesting? If so, then it may be worth investing in.
Another factor to consider is the reputation of the creator. Has the creator of the NFT produced other successful works in the past? Do they have a strong following in the art world? These are all important questions to ask before investing in an NFT.
Should you Invest in NFTs?
When it comes to investing in NFTs, there are a few things to keep in mind. First, it's important to understand that NFTs are not all created equal. Some NFTs are one-of-a-kind pieces of digital art, while others are simply digital copies of existing content. Additionally, the value of an NFT is determined by a number of factors, including the artist behind it, the rarity of the piece, and the current demand for NFTs in general.
What are the Best Cheap NFTs?
If you're looking for cheap NFTs to invest in, there are a few places to start. One option is to browse marketplaces like OpenSea or Rarible, which offer a wide variety of NFTs at different price points. Some of the best cheap NFTs for sale right now include digital trading cards, animated GIFs, and small pieces of digital art.
What Best NFT Crypto Investment?
When deciding which NFTs to invest in, it's also important to consider the broader market for NFTs. The best NFT crypto to invest in will likely be one that has a strong and growing user base, as well as a clear roadmap for future development. Currently, Ethereum is the most popular blockchain for NFTs, with a large and active community of users and developers.
Unlike cryptocurrencies like Bitcoin or Ethereum, which are interchangeable, NFTs are unique and cannot be exchanged for something else. Each NFT represents a specific asset, whether it's a digital artwork, a piece of music, or even a tweet. NFTs are stored on a blockchain, which is a digital ledger that records every transaction and ensures that each NFT is one-of-a-kind.
So, how do you buy NFTs? There are several NFT marketplaces out there, but some of the most popular include OpenSea, Nifty Gateway, and SuperRare. Each marketplace has its own unique features and selection of NFTs, so it's worth checking them all out to see which one is the best fit for you. When buying an NFT, be sure to do your research and read the description carefully. You'll want to make sure you're getting what you're paying for!
Now, let's talk about NFT marketplace valuation. Like any other market, the value of NFTs can fluctuate based on supply and demand. Some NFTs have sold for millions of dollars, while others go for just a few bucks. It's difficult to predict which NFTs will increase in value over time, but some factors that can influence valuation include the reputation of the artist or creator, the rarity of the NFT, and the perceived value of the asset itself.
If you're interested in selling your own NFTs, you'll need to know how to advertise them. Social media channels like Twitter and Instagram can be great places to promote your NFT projects and connect with the NFT community. You may also want to consider listing your NFTs on multiple marketplaces to reach a wider audience.
Speaking of the NFT community, it's a vibrant and passionate group of NFT collectors and creators who are driving the growth of the market. There are NFT calendars and NFT drops happening all the time, giving collectors the chance to snag rare and valuable NFTs before they're gone. And if you're really into NFTs, you may want to consider starting your own NFT collection. Just like with physical art, NFT collections can be a valuable investment and a way to express your own personal style.
Learn more about crypto advertising and how to target cryptocurrency users.
Best NFT Instagram Accounts
- @beeple_crap: Beeple is one of the most popular NFT artists on Instagram. He is known for his unique digital art pieces and has made headlines for selling one of his pieces for $69 million.
- @pplpleasr1: Pplpleasr is another popular NFT artist on Instagram. She creates animated digital art pieces and has collaborated with several well-known brands and artists.
- @osinachiart: Osinachi is a Nigerian artist known for her intricate digital art pieces. She has gained a significant following on Instagram and has been featured in several galleries and exhibitions.
- @mad.dog.jones: Mad Dog Jones is a Canadian artist who creates surreal, dreamlike digital art pieces. His work has gained a significant following on Instagram and has been featured in several galleries and exhibitions.
- @mattkaneartist: Matt Kane is an American artist who creates digital art pieces using machine learning algorithms. His work has been featured in several exhibitions and has gained a following on Instagram.
- @xcopy_: XCOPY is a British artist who creates dystopian, futuristic digital art pieces. His work has been featured in several exhibitions and has gained a following on Instagram.
- @slimesunday: Slimesunday is an American artist who creates psychedelic digital art pieces. He has gained a significant following on Instagram and has collaborated with several brands and artists.
- @fewocious: Fewocious is a teenage artist known for his colorful digital art pieces. He has gained a significant following on Instagram and has been featured in several galleries and exhibitions.
- @trevorjonesart: Trevor Jones is a Scottish artist who creates digital art pieces inspired by pop culture and current events. His work has gained a following on Instagram and has been featured in several galleries and exhibitions.
- @whisbe: Whisbe is a New York-based artist known for his "Vandal Gummy" art series. His work has gained a following on Instagram and has been featured in several galleries and exhibitions.
Doing Your Homework
Social media demographics can also be a useful tool when deciding which NFTs to invest in. Knowing the monthly active users on platforms like Twitter and Facebook can give you a sense of which communities are most active and engaged with NFTs. For example, if you're interested in investing in NFTs related to sports or entertainment, Twitter might be a good platform to focus on, as it has a large and active user base in these areas.
When it comes to finding the best NFT marketing company in the USA, you'll want to consider a few key factors. Among the top NFT marketing agencies, you'll find that they offer a range of NFT marketing services designed to help promote and grow your non-fungible token projects. The best NFT marketing agencies are those that excel at leveraging various strategies such as influencer marketing and social media marketing. By combining these approaches, these agencies ensure your NFTs gain the attention they deserve and reach a wider audience, helping you maximize your project's potential in the ever-evolving digital landscape.
Ultimately, the best NFT to buy for cheap will depend on your individual goals and interests. Whether you're looking for a one-of-a-kind piece of digital art or a more affordable way to get started with NFTs, there are plenty of options out there to choose from. By doing your research and keeping an eye on trends in the broader NFT market, you can make informed decisions about which NFTs to invest in and which ones to pass on.