OpenSea may have led the explosion but there are many NFT marketplaces vying to take its place. OpenSea is by far the most popular marketplace that allows users to mint, buy, exchange and sell non-fungible tokens (NFTs). More than 1.4 million NFTs have been traded on the market so far, generating $23.5 billion in volume.
That's $5 billion more than the closest competitor according to DappRadar. But as much as OpenSea is known for its success, it has also faced some legendary problems. It began in 2020 as the NFT market allowing users to “mint” NFTs for free and without consent.
OpenSea later admitted that this led to stolen works, counterfeit collections, and spam making up “80%” of new NFTs. In January of this year, OpenSea reimbursed $1.8 million to users who mistakenly sold NFTs for far less than their real value. Bloomberg discovered that at least one wallet made more than $800,000 by exploiting a flaw in OpenSea and then reselling just five NFTs (three of which were from the ultra-exclusive Bored Ape Yacht Club).
NFT sales boomed in 2021 to reach $25 billion – a huge jump from $95 million in all of 2020. OpenSea may have led the explosion but there are many NFT marketplaces vying to take its place. Coinbase NFT Coinbase was launched in 2012 and with over 89 million registered users it has become one of the top crypto exchanges.
The company is launching its own NFT marketplace, its website still reads “coming soon” in January 2022, and it has already registered a waiting list of 1.1 million people – OpenSea has just over 1 million active users. Coinbase will be a peer-to-peer NFT and will initially be built on the Ethereum network, with plans to support multiple blockchains in the future. Coinbase has already announced partnerships with groups like Lazy Lions and DeadFellaz.
FTX NTFs The FTX marketplace for NFTs launched in October last year, but with major differences to Coinbase NFTs. The NFT market is not peer-to-peer, meaning that collectors give up direct ownership of their assets as their data is recorded and stored on their FTX network. It was also launched on the Solana blockchain, rather than Ethereum.
The greater central control of FTX NFT means that the platform implements its own bidding mechanisms. This gives less autonomy but allows FtX NFT to charge a lower fee structure of 2% compared to 2.5% at Coinbase. EverGrow Coin NFT Marketplace EverGrow Coin is rolling out a new NFT Marketplace on the BNB Chain that introduces a completely new protocol.
This will allow NFT holders to put up their digital assets as collateral against crypto loans, which can be used to generate profit in various DeFi projects. NFT lending provides a completely new way for NFT collectors to generate passive income from their assets without actually selling them. Since the EverGrow Coin NFT marketplace is also on the BNB chain, users will see much lower gas fees compared to marketplaces built on Ethereum.
EverGrow Coin itself is a reversal token that pays BUSD daily to investors, and is funded through a 14% tax on transactions. To date, more than $35.5 million has been paid out to coin holders (it only launched in September last year) and the NFT marketplace is just one of a host of new applications to generate more rewards for EverGrow Coin investors. Rarible Rarible started with higher monthly trading volumes than OpenSea, but has struggled to keep up with the 2021 boom in NFTs.
But while OpenSea has since found itself mired in scandal, Rarible has gone on to build in robust facilities that will make it a stronger competitor in 2022. Rarible has already launched a governance token – RARI – something OpenSea has yet to achieve. Rarible has also launched support for NFTs on the Flow and Tezos blockchains, with plans to support Solana and Polygon in the near future.
Zora Zora is a lesser-known NFT marketplace that doesn't score in DappRadar's top 25 NFT marketplaces by trading volume. But its permissionless “on-chain” platform has attracted some historic purchases — such as PleasrDAO’s $4 million purchase of the original doge meme NFT. Zora's statement aims to eliminate middlemen and monopolies who cut off ordinary traders from the market.
It does this by acting as a “media recording protocol” rather than an NFT marketplace. The benefits are zero fees to list, buy or sell NFTs and greater freedom for artists to set their own prices and collect royalties on the resale of their artwork. There is no doubt that OpenSea is still the highest NFT market in terms of volume and transactions to date.
But its rapid expansion has come at the expense of security and ease of use. Unless the platform corrects its mistakes, this could become the next top NFT market in 2022. Source-
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