Understanding of NFTs has doubled in the past year

Understanding of non-fungible tokens (NFTs) has nearly doubled in the past year, according to new YouGov polling data.

Data shows 23% of US adults have now heard of NFTs and know what the term means, up from 12% last year, while the proportion of those who have heard of NFTs but don’t know what they are is also up.

It’s younger Americans driving this increase in understanding, with 37% of Americans under 30 reporting that they understand the meaning of non-fungible tokens along with 28% of those aged 30-44. Data shows 16% of Americans between the ages of 45-64, and 15% of those 65 and over, reported an understanding.

Looking at education crosstabs, we see higher levels of understanding among those who hold a college degree (30%) or post grad (35%) compared to those with a high school education (15%) and some college (23%).

NFTs are digital assets on the blockchain that keep track of ownership of virtual items, be they major sporting moments (like the ones on NBA’s Top Shots), video game characters, or works of art.

Sales for NFTs topped $25 billion in 2021 as speculation grew for the crypto assets.

Meanwhile, YouGov data reveals only about 7% of Americans overall view NFTs as good investments. Because basic understanding of how they work isn’t widespread, 62% say they aren’t sure, while 30% say they are a bad investment.

Data indicates there isn’t a substantial difference in opinion among different education levels, though those with a college degree are slightly more likely to think they are a good investment (9%).

Major brands, across nearly all major consumer sectors, are issuing NFTs as an experimental portion of their marketing mix, including big players in fast food, fashion, sports, and children’s collectable toys.

Marketers ought to concentrate on two aspects of YouGov’s latest polling numbers – those who don’t know what they are, and those who are not sure if they are a good investment. The large proportion of the public who simply don’t know what NFTs are or if they should buy presents an opportunity for marketers to teach and shape how consumers view these assets – something which could very well play a critical economic role in the metaverse and Web3, if many (but not all) commentators are to be believed.

Methodology: YouGov interviewed 1,000 US adults between February 7 – 10, 2022. The margin of error for the overall sample is +/-3.6%. Interviews were conducted online.