Are NFTs The New Must-Have Collector’s Item?

NFTs have entered the public consciousness – many Americans now say they’re familiar with them, but they’re divided on their value. In a recent study by The Harris Poll on behalf of Adweek, 40% of Americans say they’re now familiar with NFTs – up from 27% who said they were familiar with them when polled just under two weeks ago – and 81% are now aware of them.

And while 40% of the Americans who are familiar with NFTs say they’re at least somewhat likely to consider buying one, 42% of those familiar with NFTs see them as a short-term fad (e.g., they won’t be popular after 5 years). That said, 38% of Americans familiar with the crypto tokens say they’re a worthwhile financial investment even if they stop being trendy or popular.

Despite their growing popularity, few Americans overall are investing in NFTs as of now – only 12% say they are currently invested – but millennials are the most likely to have invested. Twenty-seven percent of millennials – who are also the most likely to be invested in cryptocurrencies – say they’re currently invested in NFTs.

Notably, those who consider themselves “collectors” are also more likely to own NFTs – 22% say they do. And that ticks up for wealthier collectors – 33% of collectors from households with incomes north of $100K say they currently collect NFTs. 

Wealthy consumers and millennials are also the most likely to be collectors – and to collect NFTs. Half (50%) of Americans with a HHI above 100K+ say they’re collectors, and 31% are collecting NFTs. What’s more, 63% of millennials say they consider themselves collectors, and 40% of them are collecting NFTs

Among collectors, collecting NFTs is as common as collecting vinyl records and vintage toys (22% collect) – and more popular as a collector’s item than sports memorabilia (21% of collectors), comic books (19% of collectors) and cars (18% of collectors).

However, there’s a key difference in perspective between those who consider themselves investors and those who consider themselves collectors. Investors are more likely to see NFTs as a short-term fad (50% of investors vs. 43% of collectors) while collectors are more likely to see the sentimental value (61% of collectors vs. 46% of investors)

For those considering buying NFTs, they’re most likely to purchase an NFT of a song (36%), followed by digital artwork (35%) and videos (33%). NFTs of tweets (17%) and essays (13%) ranked the lowest on the list of options. 

Potential buyers say they’re most likely to buy an NFT for the return on investment – 40% said this – although the artistic value was nearly as important: 36% said they would buy because they’re an “art fan.”

And when it comes to specific brands, they’re most likely to buy an NFT from Nike (57%). Meanwhile, only 17% said they’d buy an NFT from Yeezy, and only 13% said they’d buy one from Charmin. 

Despite concerns about NFTs’ carbon footprint, consumers appear to be generally unaware of the environmental impact of NFTs – only 18% say it will have a negative impact. NFT collectors and NFT investors overwhelmingly think they actually have a positive impact (68% of both groups said this). And millennials, too, see the environmental impact as more positive than negative: 47% see the impact as positive; and only 13% see it as negative.