Survey: More than Half of Buyers Think NFT 'Flips' Are Not So Profitable

 With the growing popularity of non-fungible tokens (NFTs), many have turned to "flipping" (meaning buying something at a low price and then selling it quickly for a profit) these assets as a trading strategy. In a recent survey, some 64% of people said their top reason for buying NFTs was to “make money.”

Blockchain monitoring software company DEXterlab polled more than 1,300 people on Twitter about their NFT buying habits between late May and early June. Although most people want to profit from NFT trading, according to the results, less than 42% have so far made a profit.

Why are you buying NFTs?

— DEXterLab (@Dexterlabdata) May 27, 2022

The second most frequently cited reason for buying an NFT was that around 15% said it was to be part of the community and “show off.”

"People are highly social creatures, so the desire to be part of a community and show off is not surprising," DEXterlab wrote.

The team highlighted the success of the Bored Ape Yacht Club (BAYC), which features celebrities, as well as exclusive perks such as participation in holder-only events or new popular NFT airdrops.

Although the floor price of some NFT collectibles (such as BAYC's collections) is usually tens of thousands or hundreds of thousands of dollars, almost half of the respondents said that they are only willing to pay a modest price of $50 to $500 for NFT.

Surprisingly, the second most popular answer had a quarter of respondents saying they were prepared to spend within the survey’s cap, which was more than $2,000 per NFT.

Over the past 30 days, some of the largest “blue chip” NFT collectibles such as CryptoPunks, Mutant Ape Yacht Club (MAYC), BAYC, and Moonbirds have seen their floor prices or market caps halved. Still, these collectibles topped the charts in NFT sales over the same period.

Although NFT prices have fallen across the board, there are still some NFTs that have not been affected by the current bear market.

Most recently, a collectible called Goblintown with no utility and no roadmap topped the charts, and has held the number three spot for 30 days since, with nearly $70 million in sales.

Currently, the series has a floor price of 3 Ethereum (ETH), with the most expensive one sold for 77.7 ETH on June 1, worth nearly $151,000 at the time.

Other signs point to a healthy market for those still holding out to profit from NFT purchases. According to a recent DappRadar report, NFT sales totaled $3.7 billion last month despite poor market conditions.

The report also revealed that Solana NFT posted its best trading month in the network’s history, generating $335 million in volume across all markets, a 13% increase from April.

NFTs continue to create a strong market for themselves, with widespread mainstream adoption imminent. According to a report by CoinGecko, the NFT market is expected to exceed $800 billion in volume over the next two years, although holders will have to wait longer to realize their profits.