What’s a Utility NFT? Customers Probably Aren’t Aware

The late 2020 to early 2021 NFT boom was typified by eye-catching sales with marginal utility. Since then, the market has made an effort to make its products more useful.

A non-fungible token known as a utility NFT is one that may be used for purposes other than trading, accumulating, or making money. These “Utility NFTs” have been hailed as the digital assets of the future.

A research made public on Wednesday claims that not enough individuals are hearing the message. 60% of NFT consumers, according to data from DappRadar and Alsomine, have never heard of utility NFTs. 13% just had “some knowledge about it.”

Six percent of shoppers have bought one or more Utility NFTs. Just 10% of those who had purchased a Utility NFT had done more than just trade with it.

Earnings & savings are seen as being the most crucial

The poll also includes a section that explains why this is. Gaining an income or boosting savings, per the study, was the main advantage of having an NFT (31%). At 22%, asset ownership ranked second in importance.

Only 13% of respondents cited ticketing as the most significant advantage of NFTs. Yet, this choice also had the highest percentage of new users, indicating that the ticketing use case is assisting NFTs in being widely accepted.

The NFT market’s accessibility may pose a significant obstacle to its expansion. The option to pay with a credit card is the second most crucial element for those who buy NFTs. This was ranked as their top priority by 30% of survey participants.

“As the NFT market expands and changes, it’s essential for customers to comprehend the entire potential of these distinctive digital assets. By educating customers on these more thorough use cases and showcasing how NFTs may improve people’s lives, the sector can gain credibility and trust from a wider audience, according to Wes Levitt, Head of Strategy at Theta Labs.

John Burris, President of MetaJuice, thinks that showcasing the usefulness before even utilizing the phrase is crucial to helping people grasp the advantages of NFTs. “New initiatives entering the market must first consider what their owners will be able to achieve. ”

People demand and expect much more than just art or speculative trading, despite the fact that it may look like pixelated JPEGs and monkey cartoons like the iconic Bored Apes became the poster children for NFTs. Consumers prioritize real advantages, utilities, pricing, and convenience of transactions, according to our research (i.e. paying with a credit card).

Will 2023 usher in the Utility NFT era?

Blockchain and web3 industries are working to improve safety and security infrastructure at the same time that businesses are creating more robust B2B solutions. We see these two innovations as essential building blocks for widespread adoption. Major corporations like Nike, Starbucks, and Walmart have started the process with their individual plans for bringing in new and existing users to Web3. One obvious item is still missing, though: a thorough comprehension of consumer wants, preferences, and behaviors.

NFTs have demonstrated their ability to disrupt business-consumer interactions, and this most recent wave of digital transformation is already having an impact across many industries. Consumers actually desire commercial NFTs, or smart contracts that reflect real, quantifiable value, a commercial advantage, or utility.