Would you believe me if a picture on the internet got sold for almost $70 million USD? A tweet for $3 million USD? A picture of rock for $1.3 million? Does all this sound crazy? But the hard truth is that the crypto realm has witnessed this level of interest among the potential investors in recent times. Why does one need to spend millions of dollars for just an art, picture, meme, video, or anything else that is available on the internet? This is because all the aforementioned assets are tokenized into Non-Fungible Tokens. The power of NFTs is tremendous as it offers immutable ownership rights to its holders by storing them in the blockchain network.
Acknowledging NFTs as the eye-opener and revenue-generator for creators/artists, many entrepreneurs see it as a phenomenal and successful business model in the crypto sphere. To be precise, NFT Marketplace Development is the opportunity for cryptopreneurs to seamlessly connect creators and NFT enthusiasts on a single platform. This blog brings out all the ins and outs of creating your own NFT marketplace.
What is an NFT Marketplace?
Any marketplace is a place where people come forward to trade goods/products with potential buyers. Likewise, the NFT marketplace is the platform that facilitates users to buy, sell, and trade NFTs seamlessly and securely. The marketplace can either support specifically one form of NFT or it can even support multiple forms of NFTs. Also, decentralized NFT marketplaces will allow anyone to create/mint their own NFTs at any time, while centralized NFT marketplaces will collaborate with reputed artists to create only the NFT collections of the partnered creators.
Application of NFTs
The business model for NFTs is huge as it widely covers almost every eminent industry in the market. Some of the popular applications are as follows.
- NFT Marketplace for Artworks
- NFT Marketplace for Music
- NFT Marketplace for Fashion
- NFT Marketplace for Sports
- NFT Marketplace for Memes
- NFT Marketplace for Games
- NFT Marketplace for Domains
- NFT Marketplace for Real Estate
- NFT Marketplace for Celebrities
- Utility-Based NFT Marketplace
- Content Subscription-Based NFT Marketplace
The Emerging Trends of the NFT Marketplaces
It is true that the NFT marketplaces will directly depend on the type of NFT projects that rule the market. For example, smart contract-driven generative projects or profile picture NFT projects have a separate fan base in the market. The marketplace supporting these projects grabbed the attention of NFT admirers worldwide and has reaped excellent results. Presently, the craze for metaverse is very high. Therefore the marketplaces supporting virtual land, real estate properties, and other similar assets as NFTs are in a fabulous trend. Similarly, experts believe that game-based collectibles, sports NFTs, and music NFTs will share the market in the upcoming months of 2022.
Key Players of NFT Marketplaces
Some of the key players in this domain include,
OpenSea: The first platform that comes to mind whenever we hear about the NFT marketplace is OpenSea. It is the world’s largest decentralized marketplace that has multiple forms of NFTs, including artworks, memes, videos, sports collectibles, in-game assets, music, etc. It is the youngest NFT platform to accomplish unicorn status, which means the valuation of OpenSea is over $1 billion now.
Rarible: Rarible is yet another NFT marketplace that operates on the Ethereum network, which allows users to purchase, sell, mint, and hold NFTs. It is a community-driven platform that has its own native token called RARI. The governance attribute of the tokens enables users to vote on the imperative financial matters to uplift the brand in the near future.
NBA Top Shot: One of the most successful sports-based NFT marketplaces is NBA Top Shot, which permits users to buy, sell, and collect NBA NFTs. These NFTs represent influential “moments” of the matches, special moves of the players, physical trading cards, etc. The platform operates in the Flow blockchain network. It is a treat for basketball-cum-NFT fans as both are available in a single package.
Decentraland: This is a platform that operates a shared virtual world, where users can buy, sell, and trade digital real estate and, at the same time, they can explore, communicate, and play games within this metaverse. They have their own native tokens named MANA and LAND to provide rewarding utilities to users. A separate NFT marketplace is available for the platform to enable users to trade the in-game assets as NFTs all across the globe.
A Region-Wise Break-Up
According to the stats of Statista, the Philippines tops the list of consumers who show a great interest in buying NFTs or already own at least one. 32% of the total population of the Philippines already own NFTs, and 9.5% of people are planning to buy their first NFTs. The list is followed by Thailand, where 26.6% own them already, and 7.9% have plans to procure their first-ever NFTs. Similarly, Singapore tops the list of consumers who show great interest in searching for NFTs. The list is followed by Hong Kong and China. Apart from these, NFTs are seizing the attention of creators and artists across oceans as it recognizes their talent by providing immutable ownership rights.
The Revenue Model of NFT Marketplace
The various sources from which an NFT marketplace collects revenue are listed below.
Minting Fees: NFT marketplaces will levy a small minting fee for all the NFTs minted on the blockchain.
Listing Fee: Some of the marketplaces may even charge a minimum fee for listing the NFTs for an auction or fixed-price sale.
Transaction Fees: The trading fee is the most common fee for NFT marketplaces. For all the NFTs bought and sold, a fee will be deducted as commission from the platform.
Advertisement: Similar to ad campaigns, some of the marketplaces will allow creators to display their NFTs at the top, above all others, by opting for advertisements.
Hope this blog has answered all your questions regarding the NFT marketplace development. “Make hay while the sun shines,” they said. So it is the right opportunity to utilize this trend and situation to develop your own NFT marketplace. All you need to do is approach a good NFT development company to turn your NFT dreams into reality.