Exploring NFT Awareness Amongst Digital Consumers: A Detailed Study
Since the creation of the first non-fungible token (NFT) in 2014, the technology has slowly managed to gain traction due to its practical features.
We surveyed digital consumers to understand their thoughts on the technology and understand the key barriers in NFT adoption.
Here’s what they had to say!
Are you aware of NFTs?
of consumers are aware of the NFT phenomenon in a broad capacity.
of consumers are not aware of the detailed workings of NF
of consumers heard about NFTs from a landmark news event.
Despite the majority of consumers having heard of NFTs, the wide majority lacks a fundamental understanding of the way NFTs work, this signals a very cursory level of understanding of this phenomenon backed primarily by landmark news events.
How did you hear about NFTs?
of consumers heard about NFTs from Facebook.
of consumers heard about NFTs from Twitter.
of consumers heard about NFTs from YouTube.
of consumers heard about NFTs from Reddit.
of consumers heard about NFTs from Word of Mouth.
Out of the people that had an awareness about NFT technology, the dominant source of learning was social media networks. Video streaming websites like YouTube also served as a significant learning source.
Social media emerged as the dominant learning source for consumers because of the aggregation of viral news. Social media algorithms were a major contributor in developing user awareness and sharing insight regarding significant milestones in the NFT space.
With the new age of digital information sharing, social media serves as the optimal platform to integrate relevant technology development and conveys it to users through the integrated algorithm.
What are the biggest challenges of NFT adoption?
While there has been a massive increase in NFT awareness in digital consumers, adoption has lagged behind because of a number of different factors. Users don’t have a clear understanding of the value proposition behind NFT technology.
The codependence of NFTs on cryptocurrencies makes it hard for consumers to dissociate from the risks attached to conventional crypto products.
What are the biggest challenges in increasing NFT awareness in digital consumers?
When NFTs first emerged onto the horizon, they were largely limited to the crypto industry. No one expected the industry to experience exponential growth in a matter of months. Today, NFTs are being practically implemented in various segments to improve efficiency and introduce decentralized technology. However, digital consumers shared the following insights about NFT technology.
of digital consumers believe that NFTs could potentially be a scam.
In our most recent survey, the five biggest challenges of NFT adoption include the following.
Beyond the challenges identified above, one significant dilemma that exists amongst consumers is the challenge of understanding about the fundamentals of the industry. The technology is still emerging and it is clear that consumers don’t have a clear understanding of the ways the technology works. Therefore, the primary factor in increasing consumer adoption is to develop a knowledge base for consumers which bridges the gap between their current understanding and the actual workings of the technology.
Understanding NFT Awareness Amongst Digital Consumers.
Deciphering the adoption of Non-Fungible Tokens (NFTs) in digital users.
The Biggest Challenges in NFT Adoption
of consumers do not have a detailed insight into the different applications of NFTs.
• 12% users only know about profile picture NFTs. • 7% users are unable to distinguish the differences between NFTs and broader cryptocurrency.
of users are not aware of the ways they can interact with NFT technologies in their daily lives.
• 7% users are unable to distinguish the differences between NFTs and broader cryptocurrency. • 15% users wanted to learn more about new NFT products and services
of consumers lack clear awareness over how NFT technology provides performance benefits over other technologies.
• 22% consumers feel that their current digital needs are adequately fulfilled by conventional technology. • 17% consumers lack a benchmark understanding over NFT integration into traditional sectors.
Key Takeaways: Understanding NFT Awareness Amongst Digital Consumers
Here are the primary takeaway factors that emerged from the survey results.
of consumers are aware of the NFT phenomenon and shared that they had heard about NFTs during their digital browsing experience.
of consumers had an active experience with NFTs and tried to interact with the technology on a personal level. Key segments in the space included profile picture NFTs (PFPs) and commercial access NFTs.
of consumers that use digital platforms know about the utilization of NFTs in property purchases.
of users are excited to learn more about NFT technology and its applications in real-life situations.
Overall, the majority of consumers are aware of NFTs and are looking forward to learning more about the technology and its practical application in digital domains.
Despite the existing challenges, the number of consumers learning about NFTs is increasing over time. The number of consumers having an understanding of NFTs increased from 42% to 95% from 2021 to 2022.
When it comes to NFT adoption, there is a massive difference between awareness and adoption. Adoption is primarily characterized by understanding the phenomenon and finding value in embracing the new technology. Awareness on the other hand, is limited to cursory knowledge.
Findings from our survey reported a holistic increase in awareness but a stagnating rate of adoption due to the stigma associated to the broader crypto industry.
Overall, most businesses are optimistic about the state of customer success and experiences in 2022.
Despite the lack of practical usage experience, most digital consumers are thinking about engaging with NFTs on a practical level. The level of adoption is expected to increase significantly in the coming years as users learn more about the ways in which they can engage with this technology. Based on an insight into the current barriers towards NFT adoption, it can be established that there is a strong need to educate consumers about the technology along with tools to simplify access in practical segments.
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