What is a Utility NFT? Consumers certainly don’t know
According to a report from DappRadar and Alsomine, the industry needs to shout louder ‘NFTs.’
The NFT boom from late 2020 to early 2021 was characterized by headline-grabbing sales with little utility. Since then, the industry has tried to put utility at the forefront of its products.
A Utility NFT is a non-fungible token that is useful for more than trading, collecting or making money. These “Utility NFTs” have been touted as the future of digital assets.
According to a report released Wednesday, the message is not reaching enough people. Findings from DappRadar and Alsomine show that 60% of NFT consumers have not heard of Utility NFTs. 13% had only heard “something about it”.
6% of consumers had purchased one or more Utility NFTs. Only 10% had purchased a Utility NFT and used it for more than trading.
“Earnings and savings” are considered most important
Another area of the survey sheds light on why this is. According to the research, the most important benefit of owning an NFT was making money or increasing savings (31%). Asset ownership was the second most important at 22%.
Only 13% of respondents said the most important benefit of NFTs was ticket sales. However, this was also the option with the highest representation of new users, suggesting that the ticket use case is helping NFTs go mainstream.
The availability of the NFT market can be a major barrier to growth. For people buying NFTs, the ability to use a credit card ranks as the second most important factor. 30% of respondents rated this as their highest priority in the study.
“As the NFT industry continues to grow and evolve, it is critical for consumers to understand the full potential of these unique digital assets. The industry can build credibility and trust with a wider audience by educating consumers about these broader use cases and demonstrating how NFTs can enrich their lives,” said Wes Levitt, chief strategy officer at Theta Labs.
A key to helping consumers understand the benefits of NFTs is to showcase the tool before using the term, says John Burris, COO at MetaJuice. “New projects launching in the space must first ask themselves, ‘What will this project allow owners to do?’
You can read the full report on DappRadar’s website here.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
