NFT Flipping Not So Profitable

NFT Flipping Not So Profitable

In Brief

  • A survey found that 64% of people bought an NFT with the intention of making money, but less than 42% of those people have actually made a profit.

  • The second most common reason for buying an NFT was to be a part of a community.

  • Some NFT collections have seen their prices halve in the past month, but sales volumes for NFTs have actually increased.

A survey has found that more than half of NFT buyers are not making a profit from flipping them.

Even though a lot of people are regretting their NFT purchases, there are still signs that point to a healthy and strong market in the future.

The recent popularity of nonfungible tokens (NFTs) has lead to people "flipping" them as a trading strategy. In a recent survey, around 64% of people said that their primary reason for buying an NFT was to make a profit.

A recent poll of 1,300 people on Twitter showed that even though most people are looking to make a profit from NFT trading, less than 42% have actually done so.

The second most popular reason that people buy NFTs is to be part of a community, with around 15% of respondents saying so.

"People are social creatures, so it's not surprising that they want to be a part of a community and show off," DEXterlab wrote.

The team pointed to the success of the Bored Ape Yacht Club (BAYC) as an example. This club has celebrities as members, as well as access to events and new NFT drops that are exclusive to holders.

Although some NFT collections can often see floor prices in the hundreds or thousands, almost half of respondents said they were only comfortable paying a modest price of between $50-$500 for an NFT.

Surprisingly, a quarter of respondents said they are ready to spend more than $2,000 per NFT, which was the second most popular answer.

In the last 30 days, some of the most popular NFT collections like CryptoPunks, Mutant Ape Yacht Club (MAYC), BAYC and Moonbirds have seen their prices or market caps drop by 50%. Even with this decrease in value, these collections are still some of the most popular NFTs being sold.

Even though NFT prices have tanked recently, there are still some examples of NFTs that have gone against the grain.

A free-to-mint collection that has no utility or roadmap called Goblintown topped the charts recently. It has seen nearly $70 million in volume over 30 days, and remains in third place currently.

The collection has a floor price of 3 Ether ( ETH ), which is around $4,000. The most expensive piece in the collection was sold on June 1st for 77.7 ETH, which was worth nearly $151,000 at the time.

Even though the market conditions are tough, there are still some healthy signs for those holding on to their NFTs in hopes of making a profit. For example, according to DappRadar, NFT sales volume last month was $3.7 billion.

The report revealed that NFTs posted their best trading month in the network's history. It generated $335 million in volume across all marketplaces. This was an improvement by 13% from April.

NFTs are still going strong and looks like they're here to stay. According to a CoinGecko report, the NFT market is projected to transact more than $800 billion over the next two years. This is good news for investors, although they will need to wait a little while longer to see any profits.

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