Are People Still Buying NFTs?

June 6, 2024

It’s been more than a decade since the first NFT was minted on the blockchain. A lot has changed since 2014 when Kevin McCoy first minted “Quantum”, a piece that would change the world forever.

Fast forward to today and thousands of people have staked their claim in this digital landscape, either as creators or collectors. It seems like the movement peaked during the pandemic when we witnessed more NFTs born than ever before - but are people still buying NFTs today?

Absolutely. While the sales figures were certainly down in 2023, there are transactions happening by the minute on popular platforms like Opensea, Rarible, Magic Eden, and all the other best NFT marketplaces.

So, why are people still buying NFTs today even though they don’t appear as popular as they once were? Simple - nothing has changed fundamentally with NFTs. They still offer collectors all the same benefits like authenticity, utility, community, and identity.

Read on below to learn more about the current NFT landscape and how you can get in on the fun yourself. In fact, you’re just a few clicks away from joining the Pudgy Penguins family here in our penguin shop or marketplace!

The Basics of NFTs

Let’s begin with an overview of NFTs for beginners. The acronym stands for non-fungible token and speaks to what makes this digital asset so unique - it’s inherently one-of-a-kind.

Most things that are collected or traded in this world are fungible - from physical paper money to cryptocurrency. You can trade one bitcoin for another - or you could even trade $3,789.37 for a single Ethereum token based on today’s exchange rates.

But NFTs are not fungible. Each is unique and has its own digital signature cemented on the blockchain to prove it. This irrefutable authenticity and originality is where all the benefits of NFTs are rooted. Here’s why NFTs are so popular:

  • Digital Ownership: NFTs provide a blockchain-based proof of ownership for various digital items, including art, music, videos, and more. This ownership is secure and verifiable, which prevents unauthorized copying and distribution.
  • Unique Identity: Each NFT contains metadata that distinguishes it from any other. This metadata can include the creator’s identity, provenance, and a history of transactions.
  • Interoperability: Thanks to standard protocols on blockchains like Ethereum, NFTs can interact with multiple ecosystems. For example, a digital artwork can be displayed in a virtual gallery, sold on an NFT marketplace, and even used as a profile picture on X.
  • Programmability: Many NFTs contain smart contracts that enable them to execute actions automatically under certain conditions. For instance, artists can receive royalties automatically every time their NFT is resold.

You probably associate NFTs with art, and for good reason - that’s where most of the use case has been historically. These days, though, there are so many different types of NFTs - virtual real estate, collectible items in games, exclusive content access, and even identity verification within digital communities.

Are People Still Buying NFTs?

You can see why these were such a revolution when they first started back in 2014 - but here we are 10 years later. Are people still buying NFTs, or were these just a flash in the pan?

There’s been a lot of concern that the industry itself is in turmoil, and much of this can be attributed to fearmongering. OpenSea recently laid off half its staff, while SuperRare parted ways with 30% of its workforce. 

These figures don’t mean people aren’t buying NFTs, though - rather, the companies themselves may have been overzealous in their hiring efforts as tech companies are notorious for doing. 

So, let’s look at what the data is showing for NFT sales trends. In the last 30 days alone, the CryptoPunks project has seen a trading volume of $27,898,056. There were 102 transactions for this project alone, that’s 3 a day for just one single project! Perhaps more importantly, this was a 100% increase month over month, a promising trend.

Meanwhile, Bored Ape Yacht Club generated $16,595,603 across 364 transactions. Our own Pudgy Penguins were bought or sold 231 times in that span for a total trading volume of $8,391,291.

All of this is to say, yes - people are still buying NFTs. They may not be buying speculative projects in the same way they once did, but the best NFT projects that are focused on creating value for their community are still thriving. So, why are people still buying NFTs?

Why Are People Still Buying NFTs?

Now, why do people buy NFTs in 2024? The same reasons they bought them a decade ago. These digital collectibles still hold the same benefits - collectibility, rarity, utility, community, identity, and more.

Collectibility and Rarity

More than 105,000 years ago humans began collecting stuff. The desire to own stuff and collect it is not going to change anytime soon. And there’s no better way to collect things you’re passionate about than through NFTs.

Each NFT has distinct characteristics that cannot be replicated, making them rare by design. This rarity appeals to collectors who value unique digital assets that can be verified for authenticity through blockchain technology.

Utility and Interactivity

The common narrative of the naysayers is that NFTs are just a picture that you can screenshot…those who have actually owned an NFT know this is not true! These assets have tangible utility and interactive features that make them worth holding onto.

This can range from granting access to special events or exclusive content, to interacting within video games or participating in virtual worlds. The ability to use NFTs in various interactive and functional ways keeps them relevant and valuable to their owners.

Community and Identity

NFTs often serve as a badge of membership within certain digital communities, fostering a sense of belonging and identity among holders. 

Ownership may get you access to exclusive groups. You may even be able to participate in governance or contribute to the direction of a project. This has always been a significant draw, as it blends social interaction with digital asset ownership.

Should You Buy NFTs Today Yourself?

Just because people are in fact still buying NFTs doesn’t necessarily mean you should. We don’t recommend following the crowd and doing something just because it’s popular. Instead, think about whether or not you should buy an NFT based on your personal interests, goals, and financial situation. 

If you have a passion for digital art, gaming, or collectibles and enjoy engaging with communities around these interests, great - there’s no better way to embrace this than through the world of NFTs.

You should also be aware of the cost of NFTs, which may be a barrier to getting into this space. Becoming an owner of a reputable, sought-after NFT will likely cost a pretty penny, and there’s no guarantee you’ll get a return on your investment. 

This is why it’s so important to look at NFTs as a purchase in your passion rather than an investment. There are far too many tales of people jumping on board a project’s bandwagon only to watch floor prices plummet.

The good news? This can be avoided with a bit of due diligence and our advice on how to find upcoming NFT projects. We’ll walk you through a few tips on getting started below!

Tips on Getting Started

Buying an NFT is not something you should take lightly, especially given the financial side of things. Only make this purchase with money you don’t need, and take your time to learn the ins and outs of the NFT market to ensure you’re making a wise buying decision. 

We have a detailed guide on how to buy NFT on Opensea specifically, but here is some advice on starting this digital journey on the right foot in general:

  • Set Up a Digital Wallet: Choose a secure digital wallet that supports NFT transactions and Ethereum, as most NFTs are Ethereum-based. Examples include MetaMask, Trust Wallet, or Coinbase Wallet.
  • Fund Your Wallet: Transfer cryptocurrency (typically Ethereum) into your wallet. This will be used to purchase NFTs.
  • Choose a Marketplace: Select a reputable NFT marketplace. Popular platforms include OpenSea, Magic Eden, and Foundation. Research each platform to understand their fees, the types of NFTs offered, and their security measures.
  • Explore Collections: Look for NFTs that resonate with your interests. Pay attention to the community and creator engagement around specific NFTs. Social media is also a great place to find unique collections and opportunities. 
  • Understand Gas Fees: These are transaction fees on the Ethereum network required to complete a purchase. They can vary depending on network congestion, but can often catch you off guard with how high they are.
  • Make a Purchase: Once you find an NFT you like and have done due diligence, you can make a purchase directly through the marketplace using your digital wallet. This will either involve bidding on a project or choosing to buy it outright. Only make your purchase through a secure marketplace!

Our blog has more resources to set you up for success as you get started with NFTs. Learn about how to transfer NFT to another wallet, where to sell NFTs, or even the history of NFTs

If you aren’t sure where to start, you can’t go wrong with Pudgy Penguins. Our movement began in 2021 when we minted 8,888 adorable penguin characters, each of which radiates positivity, creativity, and freedom. The community around our brand echoes these sentiments. 

Part of what makes us unique, though, is that we were the first Web 3 brand to take things back into the physical realm through our penguins toys. These include penguin plush toys, penguin figurines, penguin collectibles, and a whole lot more.

Each toy comes with a digital adoption certificate which can be used to gain access to Pudgy World, a digital realm where you can unlock special traits, play games, and more.

We invite you to browse our marketplace today and see what’s currently available, or learn more about the Pudgy Penguins movement over on our website as we wrap this guide up with a few parting thoughts below.

Wrapping Things Up

There you have it - people ARE still buying NFTs! The question is, will you? While the hype may have subsided over the years, NFTs are still a staple in the metaverse as they have fundamentally changed the game for ownership and creation.

Whether you're drawn to the artistry, community, or the sheer experience of collecting and owning something nobody else can have, NFTs are an exciting venture - one that you need to join yourself to truly appreciate!

So, what are you waiting for? From unique digital items to adorable physical goods, there is something for everyone in the Pudgy Penguins universe. See what catches your eye today.

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