Non-Fungible Tokens, often known as NFTs, are sweeping the globe. This expanding interest has given rise to numerous NFT exchanges where people can invest in or trade NFTs.
In the past, we presented a primer on investing in NFTs. We’ve broken them down below to help you quickly understand who each of the top platforms in this market is best suited for.
Ready?
Let’s start now.
What is the NFT Marketplace, exactly?
An NFT marketplace or investment platform is a decentralized application created on the blockchain.
But, while using blockchain technology to record transactions, you can make your own His NFTs, sell your own His NFTs, or purchase other people’s creations.
These investment platforms have advantages; therefore, they contrast the top venues for NFT investments based on different criteria.
2. What distinguishes the NFT marketplace systems from one another?
In general, any marketplace that wants to succeed needs a lot of consumers and sellers using it without being overwhelmed by the costs of doing business there. This holds for the NFT Marketplace as well.
2. A test of transaction fees
It’s that easy. The market minting or trading expenses should not be expressed in US dollars as this alienates investors and innovators. If embossing is inexpensive, this is a plus.
2B. Public testing
A benefit of mining NFTs on well-known blockchains is that it increases the number of mints and community engagement for later trade.
Even though the same NFT is adverse in a blockchain with few users (because new mints are hard to come by and community engagement in subsequent transactions is expected to be low).
3. Test – Well-known NFT Market
So with our two-part analysis, let’s look at some well-known NFT investment platforms. Because we only want to focus on standalone marketplaces and media, we didn’t include in-game marketplaces in our analysis.
3 OpenSea
The local net NFT market for the Ethereum blockchain is called OpenSea. With 1.689 million traders, the amount exchanged as of right now is USD 30 billion. These indicators positioned it as our sample’s top-ranked NFT market.
Given the scalability issues with the Ethereum network, the cost to mint and exchange is too high. As a result, the platform is transitioning to a chain-agnostic structure, where they are also in beta for the Solana blockchain and host collections at the Polygon Network.
LooksRare
Another local online NFT market to the Ethereum blockchain is called LooksRare. There are more than 73,000 traders and $22 billion worth of trades.
In terms of all-time high volume for sampling purposes, these measures position the NFT Marketplace at the top, but its sparse user base is a significant disadvantage.
The price of Mint & Trade is high due to the Ethereum blockchain’s scalability problems. This is yet another drawback.
C. Solanato 3.
On the Solana blockchain, there is an online NFT market called Solanato. The Solanato platform competes with LooksRare, having seen over 230,000 dealers in its lifespan. Its trade volume is currently a little over $650 million, nevertheless. Of course, it goes without saying that since this is a new platform, the statistics are much lower than for his two prior marketplaces.
But this new platform already has so many users attests to its popularity.
The Solana blockchain’s comparatively low fees are one factor in this achievement. In addition, the Ethereum blockchain’s scalability issue was addressed by creating the Solana blockchain.
Even with its current architecture, Ethereum, in particular, cannot execute massive numbers of transactions efficiently.
As a result, the Ethereum blockchain has expensive transaction fees. Because the Solana blockchain design is more scalable, transaction fees are reduced. That is a plus.
Magical Eden
Similar to Solanart, Magic Eden is a native Solana blockchain marketplace with the benefit of highly cheap transaction fees.
However, the community is more significant than Solanart’s (about 637,000 total) and has double the total volume (USD 1.19 billion).
Rarible
Another native to the Ethereum blockchain NFT marketplace, Rarible also supports Tezos. The total amount exchanged, however, is only USD 299 million, and there are only roughly 103,000 traders altogether.
4. NFT Marketplaces That Stand Out & Why
According to the information above, OpenSea is traders’ most often used investing platform (1.69mn). As a result, OpenSea has high levels of both creative flow and liquidity (lifetime volume of USD 30bn).
However, the Ethereum blockchain has prohibitive transaction costs.
The platform is transitioning to a chain-agnostic structure, enabling trading on the Polygon blockchain, and it will also accept Solana NFTs. This hopes to expand the platform’s user base, giving OpenSea the perfect market for his NFT investments.
However, the opposing viewpoint focuses on the emergence of more recent blockchains since they have lower entry requirements (lower transaction costs) for both developers and merchants.
Due to the argument that investing in new, obscure, and affordable NFTs is more profitable than doing business in established marketplaces, there is a significant shift away from Ethereum-based services.
This is explained by OpenSea’s decision, which welcomes Polygon and Solana NFTs and the sizable communities that Magic Eden and Solanart have established in a short amount of time.
5. VALUE ARGUMENT STORE AND NFT MARKETPLACE
I would also consider which blockchain provides a more significant value store. Following his record high of $4,600, $ETH currently trades at roughly $2,100.
After reaching an all-time high of almost $260, $SOL is trading at roughly $55. In downturns, $ETH has fared better than $SOL. On the other hand, if the market turns around, $SOL might increase (5x all-time high vs. 2x all-time high $ETH).
This is significant because the price of producing identical NFTs today is essentially equal to their inherent worth as previously created NFTs.
Regardless of availability and local concerns, Solana NFTs may increase in value by five if the market turns around and reaches record highs. NFTs on Ethereum, in contrast, might only be worth twice as much as the endless possibility of maintaining network congestion and the ensuing high transaction costs.
Therefore, it is evident that among his NFT marketplaces, OpenSea holds a dominant position. Due to this, it is the ideal market for casting or investment. But from the standpoint of a store of value, transaction costs and blockchain options are equally crucial to take into account—Eden, the beautiful flies here.
This is a false hypothesis because OpenSea’s off-chain future will most likely make it difficult for these new rivals to overtake it.