According to the “Online Art Report 2023” by Hiscox , an insurance company specialized in art and private clients in Spain, 33% of NFT buyers are currently puzzled about what to do with them.
The drop in value has led to questioning the viability of this type of asset, and the report reveals that 36% of holders of these works plan to sell part of their collections, while 6% consider donating them to charitable causes.
On the other hand, 43% intend to keep their NFTs for their personal enjoyment, 28% dream of displaying them in the Metaverse, and 19% prefer a physical gallery or museum.
A drastic loss of interest
The evolution of motivations for acquiring NFTs has also experienced significant changes. In 2022, the non-fungible token market suffered a drastic drop of 90%, mainly due to the collapse of cryptocurrencies such as Luna or FTX.
For example, the leading sales platform OpenSea reduced its revenue from 3 billion in September 2021 to just 350 million in September 2022. According to the report, only 12% of buyers plan to purchase an NFT in 2023, which represents a 15% decrease compared to the previous year.
Although these products have been attractive for their Phone Number Data
potential return on investment, confidence in this characteristic has decreased from 82% in 2022 to 66% in 2023. On the contrary, the number of buyers who are interested in them for their impact has increased. social, patronage and the sense of belonging to an open-minded community. These reasons have gone from 39% in 2021 to 54% in 2022 and from 38% to 44%, respectively.
What has happened?
The loss of interest in digital art of this type and the decline in sales have led to questions about the existence of a speculative NFT bubble and its legitimacy as a new form of online art. According to the report, 39% of art buyers consider this market a speculative bubble, and 50% do not perceive artistic value in the toquens. In fact, 59% of those surveyed show no interest in this format and prefer traditional physical art.
However, some buyers indicate that they would consider purchasing NFTs if the market were more regulated (37%) or if the buying and selling process were more similar to that of traditional e-commerce, which would provide greater confidence (29%). Furthermore, 28% would be willing to buy these assets if traditional artists ventured into this format.
«Over the last 12 months, we have witnessed a decline in the NFT market, largely due to investor caution following the volatile behavior of cryptocurrencies, such as FTX. Thanks to this report, we can understand the trends of this market and anticipate the challenges that will face not only NFTs, but also the online art market in general," concludes Eva Peribáñez , director of the Art and Private Clients division of Hiscox . Spain .