The NFT Market Tripled Last Year, and It’s Gaining Even More Momentum in 2021

The NFT Market Tripled Last Year, and It’s Gaining Even More Momentum in 2021

The NFT market experienced a significant surge in growth in 2020, with its value tripling to over $250 million, as reported by NonFungible.com in collaboration with L'Atelier. This remarkable increase in market size reflects the growing interest and adoption of non-fungible tokens (NFTs) among investors and collectors alike. Additionally, the number of active wallets in the NFT space nearly doubled, indicating a substantial increase in user engagement and participation.

Meanwhile, in a separate study, it was revealed that the biggest consumer apps owe their early growth to just a handful of strategies. Startups and established companies alike found success in acquiring their first 1,000 users through a variety of tactics. However, it is important to note that no platform or community achieved success by employing more than three strategies. This suggests that a focused and targeted approach is more effective in gaining initial traction.

One of the most popular strategies employed by consumer apps is to directly engage with their target users. This can be done both online and offline, as well as through personal connections and referrals. By narrowing down the definition of their target user, companies can tailor their outreach efforts to effectively reach and attract the right audience.

Uber, for example, utilized street teams in its early days to promote its ride-hailing platform. They distributed referral codes at places like the Caltrain station, encouraging potential users to sign up. Additionally, Uber's co-founder, Evan, took a grassroots approach by personally introducing the app to individuals and even handing out flyers at shopping malls. This hands-on approach showcases the willingness to try unconventional methods to acquire users.

In the case of Snapchat, the company's co-founder, Evan, recognized the importance of cultivating an aspirational brand image. He deliberately invited successful friends and connections to use the app, understanding that their influence and engagement would drive mainstream adoption. This strategy highlights the power of leveraging existing relationships and social networks to establish credibility and attract early adopters.

Furthermore, for startups relying on user-generated content (UGC), curating an early community can be highly beneficial. By carefully selecting and nurturing a group of enthusiastic users, companies can create a sense of exclusivity and build anticipation among potential users. Similarly, if a product possesses a strong value proposition, implementing a waitlist can generate a sense of fear of missing out (FOMO), driving word-of-mouth recommendations and organic growth.

Influencers also play a crucial role in the growth of consumer apps. Partnering with individuals who have a significant following and influence within a target audience can greatly amplify brand awareness and user acquisition efforts. Leveraging the reach and credibility of influencers can attract a large number of users who trust their recommendations and endorsements.

Based on these insights, here are three actionable pieces of advice for companies seeking to acquire their first 1,000 users:

1. Identify where your target users congregate, both online and offline. Engage with them directly in those spaces to build awareness and generate interest in your product or service.

2. Leverage your personal connections and invite friends who fit into your target user group. Their support and engagement can kickstart adoption and create a sense of community around your offering.

3. Consider implementing strategies that create a sense of exclusivity, such as curating an early community or implementing a waitlist. These tactics can generate FOMO and drive word-of-mouth recommendations.

In conclusion, the NFT market experienced significant growth in 2020 and continues to gain momentum in 2021. Understanding the strategies employed by successful consumer apps in acquiring their first 1,000 users can provide valuable insights for companies looking to achieve similar growth. By adopting a targeted approach, engaging directly with their target audience, and leveraging influencers and personal connections, companies can increase their chances of acquiring their initial user base and setting the stage for future growth.