Traders Union research: Most investors prefer liquid NFTs

​An NFT may look expensive and in demand, but that does not necessarily mean it can be resold quickly. New Traders Union research shows which signals investors pay attention to when assessing the actual liquidity of tokens.

The study “What Makes an NFT Easy to Resell?” found that for most market participants, the ability to sell an NFT later already matters at the buying stage. Around 72% described resale potential as a very or somewhat important factor. Only 12% said they pay little or no attention to it when choosing a token.

Active sales proved more important than a high price

When evaluating an NFT, investors most often look at recent transactions. This was the top factor for 24% of respondents. Another 19% primarily focus on the minimum listing price, while 17% look at trading volume. The number of active buyers was the main indicator for 14% of respondents.

When participants were asked which factor gave them the most confidence that an NFT could be resold quickly, 27% chose frequent recent sales. Another 22% pointed to a large number of active buyers, while 17% selected strong current bids from buyers. Overall, 66% prioritized actual trading activity and demand over price, collection popularity, or token rarity.

The minimum listing price can mislead investors

At the same time, not all market participants correctly understand what an NFT’s minimum listing price represents. Only 43% of respondents correctly identified it as the lowest current price at which a seller has listed a token for sale. Another 22% believe this is roughly the price at which the NFT could be resold.

A practical question in the study highlighted this difference. Investors were asked to choose between an NFT with a minimum listing price of $2,000 and few recent transactions, and an NFT with a minimum listing price of $900 but frequent sales, a larger number of active buyers, and current bids. The second option was considered easier to resell by 58% of participants, while only 17% chose the more expensive NFT.

A difficult sale changes the approach to future purchases

Experience also affects the behavior of NFT investors. After a situation in which a token took longer than expected to sell or required a price reduction, 30% of participants said they would pay closer attention to sales and buyer activity. Another 23% would focus more on liquidity, while 15% would prefer actively traded collections. Overall, 68% said that after a difficult resale, they would place greater emphasis on liquidity and demand when making future purchases.

The strongest warning sign for investors was a lack of recent sales, selected by 26% of respondents. Another 22% would be concerned by a small number of active buyers, while 17% pointed to a large gap between sellers’ asking prices and current buyer bids.

The Traders Union study shows that a high NFT listing price alone does not guarantee an easy resale. When assessing liquidity, investors increasingly focus on the frequency of actual transactions, the number of buyers, and the presence of demand — indicators that provide a clearer picture of how quickly a token may be sold.

Source: https://tradersunion.com/news/cryptocurrency-news/show/3046800-investors-prefer-liquid-nfts/