NFT Marketplace Explained: Development And Trends in 2022-23

NFT Marketplace Explained: Development And Trends in 2022-23

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The popularity of unique arts and collectable items has surged worldwide causing NFT marketplaces to boom in millions. No wonder audiences and big investors are planning to taste the NFT marketplace because of its increasing market value. As the NFT marketplace gains popularity new trends are storming the NFT industry giving huge momentum to push the industry to a greater place. In this article, we’ll look into popular NFT marketplaces, how they work and their new trends.

What is NFT

NFT stands for Non-Fungible Tokens which are unique and non-interchangeable digital assets that are stored on the blockchain, Such as Ethereum. A digital asset can be anything from digital goods, such as virtual world items like weapons in video games. These NFTs can be purchased by using cryptocurrencies such as Ethereum, Bitcoin, Binance BNB and others.

These Cryptocurrencies are used to buy NFTs as they are decentralized currencies and are not governed by any government body or any central authority. Cryptos have gained traction ever since their launch with large market value. Bitcoin is the most popular cryptocurrency in the world and at present, it has a market price above $35,000 followed by Ethereum which is above $2,500 and Finance which is around $390.

What is NFT Marketplace

NFT marketplace is a decentralized digital marketplace with multiple blockchain support where you can buy and sell NFTs by using cryptocurrencies such as Ethereum and Bitcoin. There are various NFT marketplaces and many of them have a unique focus or niche. Users have to create an account in these marketplaces to buy and sell NFTs. to make transactions users have to attach their crypto wallet to their marketplace account. These marketplaces can be built from scratch as well as by using ready-made tools.

How does an NFT Marketplace Work

NFTs are gaining huge momentum as artists are listing their NFTs on the marketplaces, and art lovers worldwide are considering these digital platforms to own unique arts and collectables. This allows the audience and art lovers to widen their boundaries and purchase items which are sold worldwide using the NFT marketplace.

1. How to Buy and Sell NFTs

Before we move ahead on how to buy and sell NFTs one should consider having a crypto wallet to purchase an NFT.

What is a Digital wallet and How to create one

A digital wallet is also known as an E-wallet which is a software program or website that allows one party to make transactions to another party’s wallet. To buy NFTs however, you have to create a crypto wallet to buy and sell NFTs easily.

  • MetaMask

  1. MetaMask is a digital crypto wallet that one can use to buy NFTs, it is the most popular crypto wallet and is compatible with every other NFT marketplace.
  2. MetaMask comes with an extension on the Google Chrome browser so those with a keen interest in buying and selling NFTs can install it to create a digital wallet.

2. How to Buy Cryptocurrencies

Yes, you have created an account on MetaMask but hold on you don’t have any cryptocurrencies in your wallet to purchase an NFT right, you might be wondering where can I buy cryptocurrencies? To buy cryptocurrencies you can refer to different cryptocurrency markets such as Coinbase, Crypto.com and Kraken etc. or you can directly buy the cryptocurrencies from MetaMask which is a much easier process than buying cryptos from the marketplace.

3. How to Buy NFTs

Once you have done all the required things, you can head over to any NFT marketplace and open an account by signing up, and that’s it. You are all ready to dive into NFTs and make a purchase for yourself. To do so you can place a bid on the seller’s updated value of a particular digital asset and the one who bids high is likely to get that digital asset.

4. How to Sell NFTs

Uploading your NFT on the marketplace and selling it is called “minting”, you can sell the NFTs you own by direct trading or by minting. However, minting will require an additional service fee as you will list your item on the platform. These service fees are originally known as gas fees which should be paid via a crypto wallet. As Ethereum is the largest cryptocurrency on every other NFT marketplace it has a high gas fee. One should always look at how much the gas fee is charged, as sometimes the gas fee overtakes the price of that particular item.

NFT Marketplaces

There are countless different marketplaces which you can consider to buy and sell NFTs, every other NFT marketplace has advantages and disadvantages, hence it’s up to users’ preference.

A-List of Best NFT Marketplaces

NFT marketplaces are volatile and you should consider trading on them only when you have some level of expertise to analyze the market. There are different marketplaces featuring different niches to attract the audience.

     1. OpenSea

  • OpenSea is the oldest and the most popular NFT marketplace with all types of NFTs such as music, video, art and virtual collectable items such as cards. It supports creators and has an easy to use process if you want to create an NFT. It accepts over 150 different cryptocurrencies and doesn’t have any gas fee to list an NFT except if you are using Ethereum which has a high gas fee. OpenSea is beginner-friendly hence if you want to start trading NFTs then this marketplace may turn out best for you.

      2. Nifty Gateway

  • Nifty gateway is a celebrity dominated NFT marketplace, where celebrities around the world try to purchase the best art by bidding on them. Two of the most expensive NFTs were sold on Nifty Gateway which had a value of around $98.1 million in Dec.2021. The most interesting part about this marketplace is that it lets you buy the NFTs using fiat money (government-issued currency).

      3. SuperRare

  • SuperRare NFT marketplace uses Ethereum blockchain and is one of the arts leading marketplaces in the world, you won’t find celebrity arts and meme arts here as it only allows highly creative artists to list their arts. Hence the name SuperRare. Artists have to pass SuperRare criteria to list their arts which makes SuperRare a high-end gallery.

      4. Binance NFT

  • Binance is one of the largest cryptocurrency exchange markets in the world and is one of the largest NFT marketplaces around, Binance is considered to be the future proof marketplace as it uses its own blockchain and cryptocurrency for trading NFTs.

      5. Rarible

  • Rarible is a community-owned NFT Marketplace which promotes decentralization. It is designed to sell single pieces of art as well as collections. It uses its own RARI token with Ethereum, Flow and Tezos blockchains.

NFT Marketplace Development

NFT markets are the new buzzword and have gained momentum ever since 2017, as popularity for unique arts and items grows, different industries are eager to introduce their NFT marketplace to earn future benefits. NFT marketplace development is a method by which one can build his marketplace by introducing new features. These marketplaces can either be built from scratch or by using ready-made tools.

Building NFT Marketplace from Scratch

Building a Marketplace from scratch is a costly and time-consuming process as it involves the creation of tools, features and complex designs. One can build his marketplace if he has a rare and valuable collection of art or finds a new market niche. Making your own NFT marketplace can benefit you as it will be unique.

Build NFT Marketplace from Scratch with Optymize

When it comes to remote hiring Optymize does all the heavy lifting, Our NFT marketplace development specialists can help you create a well-sustaining custom NFT marketplace. We will work with you through the entire process of NFT marketplace development. Once you understand the niche that you want to introduce in your NFT marketplace, we can create a user-friendly NFT marketplace for your handpicked artists and buyers. Our NFT development specialist will help create top-notch front end designs and build effective backend resources.

     NFT Areas We Cover

  • NFT Marketplace Development.
  • NFT Smart-Contract Development.
  • NFT Exchange Development.
  • Peer to Peer Exchange.
  • ICO Development.
  • Cross Chain NFT Development.

Building NFT from Ready-Made Tools

Using ready-made solutions to build a new marketplace is a budget-friendly and less time-consuming process, as it contains necessary ready-made functionalities, features and design. Ready-made tools are nothing but the clones of other NFT marketplaces such as OpenSea clones. These clones are customizable in a short period, even necessary alterations can be done as per requirements.

Features of NFT Marketplace

     1. Storefront

  • It is the most common and primary feature in any marketplace which provides all the necessary information about an item such as bids, history, owner and pricing history.

      2. Advanced Token Search

  • The items on the marketplace must be sorted, so both the buyers and sellers can find that particular item with minimum effort. This quick search enhances customer satisfaction.

      3. Filters

  • The items should be divided into different categories by which they can be found easily and quickly.

      4. Crypto Wallet

  • To make a transaction buyer and seller needs to have a crypto wallet. Both buyer and seller use the wallet to make transactions of NFTs. MetaMask, MyEtherWallet, Wallet Connect, and Coinbase are some popular crypto wallets.

      5. Create Listing

  • Create listing feature allows sellers to list their NFT for sale. Hence, creating listings is an important feature for sellers.

      6. Buy and Bid

  • This feature allows users to purchase and bid on an NFT hence this feature must be included. The bid expiration date must be mentioned along with the bidding data, which will help buyers to bid and have relevant information on a particular NFT.

Important NFT Trends in 2022-23

January 2022, began with immense seismic activity as everything was sold digitally by NFTs, every other investor began to invest in the NFT marketplace as it provides hefty benefits. For some days everyone began to think NFTs will take over traditional auctions and will change the world order. Though NFTs are ballooning their vastness, new niches and artists are eager to make investments in new and effective marketplaces. When India’s largest NFT marketplace Wazirx was about to launch, more than 10 thousand artists and creators applied to join the platform, this shows how much demand for NFT has grown in recent years. As NFT is a growing industry it is likely to be stormed by new trends every year, we will take a look at some of the most important trends in the NFT marketplace in 2022-23.

Crypto Exchanges opening their NFT Marketplace

  • 1. Over the past few months, NFT Marketplaces have boomed, world’s largest NFT marketplace OpenSea generated $2.7 billion during the first half of January 2022. Up until now, to buy NFTs users had to buy cryptocurrencies first and then only they could buy NFTs, and it is easier for professionals as they are aware of the crypto exchange system but for beginners, it is a headache.

  • 2. Having said that, the gas fee to send one Ethereum from one wallet to another is around $50-$100. Another thing to consider is that even the slightest mistake can make crypto transactions lose millions, this opens an opportunity for crypto exchanges to build their NFT marketplace.

  • 3. Binance, a large player in crypto exchange and launched its NFT marketplace in June 2021, this allowed Binance to attract a huge audience as the users can use BNB(Binance Crypto) to buy NFTs with a low gas fee and users don’t have to go out to buy cryptos separately.

NFTs As Avatars

  • 1. Another reason NFTs are gaining more popularity and attracting more audiences is that social media platforms have allowed their users to use NFTs as their profile pictures or as avatars. This is in a sense NFT marketing on social media.

  • 2. No wonder anyone on social media can right click and save NFT’s picture, but social media has taken steps to verify the real owner of a particular NFT by introducing a badge on the owner’s profile.

Earning Cryptos and NFTs Via Gaming

  • 1. Gaming, another most prominent area, is now being used by NFTs. Blockchain-based games have allowed gamers to earn in-game assets and NFTs.

  • 2. Axie infinity has become one of the most popular games in 2021, leveraging both NFTs and Cryptocurrencies. The Axie NFT market surpassed $1 billion trading volume and 1 million daily active gamers. It has tokenized its characters and allowed players to purchase at least three NFTs before they start to play.

Alternative Blockchain launches

  • 1. When NFTs first came onto the web in 2017, Ethereum was the only blockchain that was used to run NFTs, and the fees for listing NFTs were comparatively low. As of today, the gas fees have increased by hundreds of dollars which has caused inconvenience for sellers as sometimes the gas fees surpass the price of NFTs. 

  • 2. To tackle this situation creators decided to use alternative blockchains with low gas fees such as Avalanche and Solana. These new blockchains have started to gain more audience and have become a favorable choice. The NFT industry is expected to support even new blockchains in the near future.

Conclusion

As NFT marketplaces have surged in recent years, more audiences and investors are eager to invest to get hefty benefits. Also, NFTs and their future look promising as new technologies such as metaverse strengthen their business. NFT marketplaces will continue to amaze their audience with new trends, on the other hand, popular blockchains such as Ethereum and Binance will keep on finding new solutions to lower their gas fees by introducing new algorithms to their blockchains. In the end, the NFT marketplace will be considered a place to gamble as there is no assurance of a win or lose situation. Demand drives the supplies hence as demand soars, there will be new marketplaces with different niches and one day who knows we might even see real-world items sold via these marketplaces.

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