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	<p>The adoption of NFTs has surged in recent years, with both crypto enthusiasts and traditional industries embracing this innovative digital asset class.</p>
<p>Although certain NFTs have previously sold for millions, the market has faced a significant decline alongside the wider crypto market.</p>
<p>Nevertheless, <a href="https://crypto.ro/en/news/nft-market-reaches-2-billion-in-trading-volume-in-march/">the NFT market</a> is projected to reach a value of $230 billion by 2030.</p>
<p>A new <a href="https://www.coingecko.com/research/publications/why-people-buy-nfts" rel="nofollow noopener" target="_blank">study</a> by CoinGecko and Blockchain Research Lab reveals the top reasons why people are buying NFTs, with utility and profit being the most significant factors.</p>
<p>The survey, which gathered data from 343 NFT and crypto users, ranked 11 reasons for buying NFTs based on their importance.</p>
<p>Utility emerged as the most crucial factor, with 77.6% of respondents considering an NFT&#8217;s intended function before making a purchase. The potential for long-term profit came in second at 76.1%, followed by gaining a stake in a venture or decentralized autonomous organization (DAO) at 72.9%.</p>
<figure id="attachment_20576" aria-describedby="caption-attachment-20576" style="width: 719px" class="wp-caption alignnone"><img decoding="async" class="wp-image-20576 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/04/Survey-respondents-ranked-11-reasons-for-buying-NFTs-by-importance.jpg" alt="Survey respondents ranked 11 reasons for buying NFTs by importance" width="719" height="820" srcset="https://crypto.ro/en/wp-content/uploads/2023/04/Survey-respondents-ranked-11-reasons-for-buying-NFTs-by-importance.jpg 719w, https://crypto.ro/en/wp-content/uploads/2023/04/Survey-respondents-ranked-11-reasons-for-buying-NFTs-by-importance-263x300.jpg 263w" sizes="(max-width: 719px) 100vw, 719px" title="The Top 5 reasons why people are investing in NFTs 1"><figcaption id="caption-attachment-20576" class="wp-caption-text">Survey participants rated 11 factors influencing their decision to purchase NFTs, in order of importance | CoinGecko</figcaption></figure>
<p>Other high-ranking factors included enthusiasm for the technology (71.1%), community involvement (68.8%), and appreciation for the business model or artwork of the NFT collection (67.9%).</p>
<p>Disrupting established structures or industries ranked as the least important factor, with 59.5% of respondents listing it as a top reason for buying NFTs.</p>
<h1 id="strong-1-utility-and-functionality-strong"><strong>1. Utility and functionality</strong></h1>
<p>The study highlights a growing demand for NFTs with practical applications, moving beyond their initial appeal as digital collectibles.<br />
With more diverse use cases emerging, such as digital art, virtual real estate, and in-game items, buyers are increasingly seeking NFTs that offer tangible benefits and integration with digital ecosystems.</p>
<h1 id="strong-2-long-term-investment-potential-strong"><strong>2. Long-term investment potential</strong></h1>
<p>Long-term profit potential was another key motivator for NFT buyers. As some NFT collections experience exponential growth in value, investors are drawn to this alternative asset class.</p>
<p>Despite market volatility, a significant number of NFT buyers remain optimistic about their long-term prospects and the possibility of future appreciation.</p>
<h1 id="strong-3-participation-in-decentralized-autonomous-organizations-daos-strong"><strong>3. Participation in Decentralized Autonomous Organizations (DAOs)</strong></h1>
<p>Many NFT buyers are motivated by the opportunity to participate in DAOs.</p>
<p>By purchasing NFTs associated with a particular DAO, individuals can gain a stake in the organization and influence its direction. This allows them to play an active role in the project&#8217;s development.</p>
<h1 id="strong-4-enthusiasm-for-technology-and-art-strong"><strong>4. Enthusiasm for technology and art</strong></h1>
<p>Buyers who are passionate about the underlying technology behind NFTs or the creative expression in digital art are often more inclined to invest in these tokens.</p>
<p>Innovative business models and technological advancements within the NFT space can also attract potential buyers.</p>
<h1 id="strong-5-community-involvement-strong"><strong>5. Community involvement</strong></h1>
<p>The sense of community that comes with owning a particular NFT is another significant factor driving purchases.</p>
<p>NFT collections often have dedicated online communities where token holders can discuss the project, share ideas, and connect with like-minded individuals. This aspect of community involvement can be a major selling point for buyers, providing a platform for social interaction and collaboration around shared interests.</p>

The Top 5 reasons why people are investing in NFTs

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