OpenSea has been the dominant decentralized platform for users looking to mint, buy, sell, and trade non-fungible tokens (NFTs). Serving more as an NFT aggregator than a gallery, OpenSea locked in $3.25 billion in volume for the month of December 2021 alone, according to data from Dune Analytics, and from December 2020 to December 2021, total volume has increased by a whopping 90,968%.
No stranger to challenge and criticism, OpenSea has had its share of perils and pitfalls. In particular, its former product manager, Nate Chastain, was convicted of using inside information to sell and profit from the platform’s front-page NFTs.
To add to the general feeling of mistrust, the community felt belittled after new CFO Brian Roberts hinted he was going to step into stock Exchange. However, he quickly reaffirmed that OpenSea has no plans to go public anytime soon.
OpenSea may be the number one NFT marketplace in terms of trading volumes at the moment, but in 2022 there are bound to be a handful of competitors looking to dethrone the giant.
Here are five NFT marketplaces that could potentially knock out the top contender in the coming months.
Coinbase seems to be relying on elements of centralization as the main driver of mass adoption. Capitalizing on the growing popularity of NFTs, Coinbase is rivaling OpenSea by launching its NFT marketplace, Coinbase NFT. See the article: Investing in Ripple (XRP): the Australian regulatory report inspired by the “technology agnostic” principle. According to reports, the waiting list has exceeded 1.1 million, which is more than OpenSea’s total active user base.
The Coinbase NFT launch announcement was a signal that captured the growing value that NFTs could take on as digital collectibles continue to go mainstream. Understanding how NFTs bridge the gap between culture and commerce, Coinbase NFT is likely to shake things up. In the meantime, the project has partnered with collections such as ‘World of Women’, ‘DeadFellaz’ and ‘Lazy Lions’.
Although the marketplace hasn’t launched yet, its waiting list alone suggests that many investors are either eager to get exposure to the technology for the first time or want alternatives to what they’re using. already.
According to a statement from Coinbase, Coinbase NFT will be peer-to-peer (P2P) “with an intuitive design built on top of a decentralized marketplace. Initially following the ERC-721 and ERC-1155 standards, the product also plans to support multiple blockchains in the future.
Coinbase NFT will operate primarily as a marketplace, but the company has hinted that it will also serve as a place to “foster connections.” To date, Coinbase operates in over 100 countries and reports over 73 million active users, while Coinbase customers trade $327 billion in volume every quarter, proving there is a decent amount of cash in circulation.
More than trading volume, Coinbase touts its robust user experience (UX) and transparent, streamlined, and user-friendly user interface (UI). Even though many people take to Twitter and complain on the UX/UI design of OpenSea, many other platforms have barriers to entry, while OpenSea does not.
Unlike Coinbase NFT, the FTX Marketplace launched in October with a small collection of Solana-based NFTs, and it has expanded its collection to those on the Ethereum blockchain. Unlike OpenSea and Coinbase NFT, FTX NFTs is not a P2P platform, i.e. it is centralized and custodial, with user data recorded and stored on its particular network. See the article: Ethereum Plunges 5%, Can Buyers Save Key $3.5K Support? (Opinion and Analysis). This means that users and collectors relinquish ownership in some sense.
The implications of this centralized platform are that the platform tends to apply fewer standalone benefits to its owners and more restrictions and limitations due to securities law concerns. Unlike OpenSea where users have complete autonomy over their digital assets until sale, FTX NFTs implement auction mechanisms. As Brett Harrison, President of FTX.US, explained in a statement: “By not requiring gas to do things like auctions, we are going to see a lot more price action and price discovery on the platform, and we hope that generally attracts liquidity. »
His law-abiding demeanor has had such an influence on Solana’s NFT collections that many have had to revoke the royalties they had been promised since FTX NFT announced that it would no longer support projects granting its owners such advantage.
The consequence came from US regulatory concerns. Projects on the Ethereum network are also vetted to ensure they comply with securities laws and are not counterfeits.
As such, OpenSea retains its value as it maintains the breadth of NFT collections.
Regardless of its minor hiccups, the marketplace has grabbed attention and is inferior to its rival when it comes to pricing structure. FTX NFTs has a 2% fee structure, while Coinbase’s is 2.5%.
The platform also doesn’t seem to disdain users who possibly use non-custodial wallets, but its main focus is accessibility value.
Long before OpenSea rose to the top, Rarible had higher monthly trading volumes than its counterpart. See also: Investment in the crypto SHIB: should you buy Shiba Inu at the current price?. Although it opened its platform to the community with its RARI governance token – which OpenSea users have been eagerly awaiting – Rarible has not been able to maintain the lead it had over OpenSea.
In November, the platform’s total volume value was 4% higher than October, with an estimated average of $18.2 million. However, its total monthly volume pales in comparison to that of OpenSea, given that its daily volume is on average at least five times higher.
Like the FTX NFTs marketplace, Rarible understands the benefit of a multi-chain strategic partnership. Rarible has already launched its support for NFTs on the Flow and Tezos blockchains, and there are plans to support Solana and Polygon in the near future.
With its decentralized philosophy and multi-channel support for NFTs, Rarible could become a strong contender in 2022.
Zora presents itself as a champion of Web3 and decentralization by extolling the merits of its entirely “on-chain” permissionless platform. Since Decentralized Autonomous Organizations (DAOs) tend to gravitate to these principles, the platform holds its value in historical purchases, such as PleasrDAO’s $4 million. from PleasrDAO, buying the original NFT (doge-meme).
Zora has a no-cost structure and focuses most of its efforts on being the cornerstone of the permissionless protocol. Many crypto experts are drawn to the idea of artists and creators having more autonomy and ownership over their creations. If these concerns remain relevant in 2022, Zora may see an influx of new users.
Magic Eden is currently the #1 NFT Marketplace on the Solana Network, and according to DappRadar, it’s ranked in the top 10 NFT Marketplaces with $267.14 million since its launch in mid-September 2021.
The number of unique wallets has rebounded and steadily increased over the past two months, making it a strong contender for OpenSea. However, it is important to note that users have been known to hold more than one wallet address, perhaps suggesting that there may be fewer unique active users.
The low transaction fee of 2% gives the platform a competitive edge over other exchanges, and like FTX NFT, registration is free for users. As the chart below shows, the number of transactions on Magic Eden is often double or even triple the number of transactions on OpenSea.
Although Magic Eden recorded a higher number of transactions, the amount per transaction is lower than that of OpenSea. According to DappRadar, Magic Eden has racked up over 4.5 million transactions in the past 30 days, while OpenSea has processed less than half that figure, or 1.7 million, while it has a just over five times the total volume of Magic Eden.
As the pace of NFTs has been set and digital collectibles continue to become mainstream, 2022 could see a larger demographic whose preferences may not align with OpenSea. With a focus on accessibility, regulation, and improving the user experience, these five NFT marketplaces are strong contenders to take their place at the top.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. You should do your own research before making a decision.
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