More global consumers are drawn to the blockchain technology and cryptocurrencies due to the popularity of non-fungible tokens (NFTs), whose trading volumes have increased significantly, says a report titled ‘New Value Crypto Trends in Business and Beyond-2022, published by the cryptocurrency exchange Ripple (XRP).
According to the report, people in the “Asia Pacific (APAC) and Latin America (LATAM) are more optimistic about the value of blockchain and its tokens.
While the Middle East and Africa (MEA) and North America were somewhat less enthusiastic, Europe was the most conservative.
However, the report said that the consumer experience wasn’t smooth due to Web2.0 infrastructure and design issues.
Ripple surveyed over 800 people in 22 countries in the Asia-Pacific (APAC), Latin America (LATAM), North America, Europe, and the Middle East and Africa (MEA) regions.
Here are some interesting highlights about consumers’ feedback on NFTs, metaverse, the central bank digital currency (CBDC), etc.
Global NFT Trends
Consumer Interests In NFTs Higher in APAC Region
The report noted that “respondents in APAC were up to three times more likely than respondents in other regions to say they would want to buy an NFT to commemorate an important moment. And they were twice as likely to say they would buy an NFT to show their appreciation for an artist, pop figure, or brand.”
This “suggests that the emotional attachment to creators and/or moments will be an even bigger driver of NFT interest in APAC than in other parts of the world.”
NFT Key Technology In Metaverse
The report finds that NFTs are widely used and “key technology for powering ownership in what is called the metaverse.” Metaverse is a 3D animated virtual world that offers people an immersive social, gaming, and entertainment experience.
The report further notes that whether virtual land, a car or an NBA star’s virtual sneakers, “NFTs represent ownership of unique forms of value in the metaverse.” And people can “do things like trade, game, showcase, collateralize, and lend” with this value.
Hence, the trend shows that “NFTs in metaverse are adding different values to people for varied activities,” and that’s why it is a crucial technology.
Functional Interests Score Over Emotional Reasons
Globally, consumers are “more interested in what we might call the functional benefits of NFTs as opposed to the more emotional benefits.”
Functional reasons to buy an NFT include trading, unique experiences, and appreciation in value. Emotional reasons include buying to show appreciation for any specific pop culture, artists, and brand.
“50 per cent of respondents said they would only buy an NFT for a functional reason. This is compared with 45 per cent of respondents saying they would buy an NFT for an emotional reason,” according to the report.
Music Is Most Popular NFT Genre
The report finds that 55 per cent of consumers would be interested in buying music-themed NFTs, followed by collectibles at 43 and gaming at 41 per cent. Sports and Arts came in fourth and fifth place at 39 per cent and 33 per cent favouring them, respectively.
“It will be interesting to see in the coming years if and how the metaverse changes consumers’ interest levels across these categories and perhaps introduces new categories,” says the report.
Trend Of Rising NFT Trade Volume
Ripple noted that the trading volume in NFTs increased by a whopping 38,000 per cent between 2020 and 2021, and over $10 billion worth of NFTs were sold in Q3 2021 alone.
It also notes that “artists, musicians, movie stars, athletes, brands, and more are seeing NFTs as a new way of engaging their audiences with something innovative, unique, and valuable.”
Opinion About Current NFT Technology
According to the report, most respondents believe that NFTs have a lot of scope for innovation. The NFT technology at its core is not new but an “age-old human desire to own things that connect us to our interests, passions, and memories. The core technology is proven; now, the industry needs to make it easier for consumers to participate.”
According to the report, new “approaches, including decentralised identity, will help solve some key issues around trust, security, and privacy for consumers, while making it easier to verify, buy, sell, store, transfer, show, and use NFTs.”