In recent years, non-fungible tokens, or NFTs, as a product in the world of digital assets have become very popular.
NFT itself is a new form of digital asset that has emerged quickly because of its main uniqueness, namely that each token is unique and cannot be exchanged with each other for the same value.
In addition, NFTs also provide a way for individuals to collect and own digital assets in the same way they collect physical items.
People can own NFTs that represent their digital collectibles, such as playing cards, in-game items, or other virtual items. Meanwhile, the NFT marketplace is an online platform where NFTs can be bought, sold, and traded.
Among the most famous NFT marketplaces are OpenSea and Rarible, which allow users to explore various types of NFTs and participate in trading activities.
So, to understand more about what an NFT marketplace is, the history of its development, examples of the most popular platforms, and things you should pay attention to before accessing it, see the following review.
What is an NFT Marketplace?
NFT marketplace is an online platform where users can buy, sell, and exchange non-fungible tokens (NFT). The NFT marketplace is a place where NFT holders can access the secondary market for their digital assets.
In short, an NFT marketplace is an NFT market or site that works like Amazon or eBay to sell and buy various goods but focuses on NFT products.
Basically, the NFT marketplace facilitates digital collectors in buying and selling transactions and creating their own NFT tokens in an effort to represent ownership of unique assets, both tangible (physical) and intangible (digital).
NFT marketplaces usually have an interface that allows users to search for and explore various types of NFTs. Users can use filters, categories, or keywords to find NFTs that interest them.
Basically, there are two general ways NFTs are traded on the marketplace: auctions and fixed prices. Each NFT also has a details page that provides information about the asset, which usually includes images or media, a description, information about the creator (if any), ownership history, and other statistics.
Apart from that, the NFT marketplace also records all transactions involving NFTs. This includes previous purchase and sale prices, giving NFT holders visibility into current market value.
NFT marketplaces often use blockchain technology to ensure the authenticity of NFTs, so that each NFT has an immutable digital footprint showing who created it, when it was created, and its ownership history.
Furthermore, payments on the NFT marketplace are usually made with crypto assets such as Ethereum (ETH). Users must have a crypto wallet compatible with the marketplace to make purchases.
Once an NFT is purchased, ownership can be easily transferred from one holder to another via the marketplace platform. This allows easy secondary trading of NFTs.
As additional information, a number of NFT marketplaces are also connected to the metaverse, allowing NFT owners to use them in virtual experiences, such as Decentraland or The Sandbox.
Get to know the history of the development of the NFT Marketplace
In its development history, since the “DeFi Summer” in 2020, which was a period when the total value locked (TVL) stored in DeFi smart contracts skyrocketed from hundreds of millions of US dollars to more than 20 billion US dollars, NFTs have become one of the most influential crypto assets.
This is demonstrated by the increasing number of investors, crypto fans, and even world celebrities who are involved in trading NFT assets. According to data from Coinmarketcap, the NFT market saw record sales of $2.5 billion throughout 2021.
It should be noted that in March 2021, a digital painting by artist Beeple, known as “Everydays: The First 5000 Days,” was sold for $69.3 million at auction at Christie’s auction house, creating striking global news about NFTs.
In 2022, the NFT marketplace will continue to grow with the emergence of more platforms. In this context, many artists and musicians continue to adopt NFTs as a new way to commercialize (monetize) their work and interact with their fans.
In addition, NFT projects that offer ownership of virtual assets in the metaverse are also becoming increasingly popular.
To date, several large companies have begun to explore real-world uses for NFTs, such as the tokenization of real estate properties or luxury goods ownership certificates. On the other hand, the gaming industry continues to use NFTs for in-game items and the game world economy.
Examples of the Most Popular NFT Marketplace Platforms
Knowing examples of the most popular NFT marketplace platforms is very important. The reason is, by knowing examples of the most popular NFT marketplace platforms, you can choose a marketplace that has been proven and has a good reputation among the NFT community.
This can help you avoid marketplaces that may be less trustworthy or less popular. Below are some examples of the most popular NFT marketplace platforms that you need to know about, including:
1. OpenSea
OpenSea is one of the first NFT marketplace platforms, founded in 2017 by Devin Finzer and Alex Atallah in New York, United States.
The platform allows users to create NFTs for free and sell them via direct purchase or auction. OpenSea is best known for being a place where digital artists, collectors, and even famous figures get involved in the world of NFTs.
As for Indonesia, OpenSea’s popularity is increasing after Ghozali Everyday’s success in selling its NFTs at significant prices. In fact, several Indonesian artists and the Governor of West Java, Ridwan Kamil, have also joined OpenSea.
2. SuperRare
SuperRare is an NFT platform that supports digital artists by offering various types of artwork, including images, videos, and three-dimensional works. Users who want to purchase art on SuperRare use the cryptocurrency Ethereum.
SuperRare also has its own token with the same name, which is used to discover and support new talent on the platform.
3. Nifty Gateway
Nifty Gateway is an NFT marketplace that has been used by famous digital artists such as Beeple and Grimes to sell their works. This platform offers access to a variety of unique digital artworks.
4. Rarible
Rarible is an NFT platform that operates in a similar way to OpenSea. It is a democratic, open marketplace, allowing artists and content creators to create and sell their own NFTs.
Rarible also has a token called RARI, which gives holders access to various features, including changeable fees and community rules.
5. Axie Marketplace
Axie Marketplace is a platform used to purchase NFT assets related to the video game Axie Infinity.
Here, players can purchase new Axies, virtual lands, and other items to use in the game. All of these assets are built on the Ethereum blockchain.
6. Honorable Mention: BWOPLE
BWOPLE is a unique NFT project created by an artist named Gengoya. In this project, each asset is created by hand without using computer algorithms, making it unique in the NFT ecosystem.
BWOPLE uses the Tezos blockchain, unlike most, which use Ethereum. To date, the BWOPLE collection has reached 393 assets with an impressive trading volume on the Objkt.com marketplace.
7. Foundations
Foundation is a relatively simple NFT platform. Users carry out transactions using Ethereum and have managed to record NFT sales worth more than $100 million since its launch in early 2021.
Users who plan to purchase NFTs on Foundation must have a crypto wallet that is primarily funded using Ethereum. Although this platform provides an easily accessible collection of artwork, Unfortunately, for beginners, starting the process of creating your own NFT on Foundation seems a bit difficult.
8. Larvalabs/Cryptopunks
Larva Labs, known as the CryptoPunks project, is an NFT platform that has achieved huge popularity. CryptoPunks were initially distributed for free, but today they are traded for millions of dollars. Larva Labs also has other projects, including Ethereum-based application development projects.
Things to Note Before Accessing the NFT Marketplace
Before accessing an NFT marketplace or engaging in NFT trading, it is very important to understand and pay attention to several key things. With a solid understanding of the following, you will be able to make smarter decisions and reduce the risks associated with NFT trading.
Here are several things you must pay attention to before accessing the NFT marketplace, including:
1. Create a User Account
Before you can make transactions on the marketplace, the first step is to create an account by registering on the platform. Registration fees may vary for each platform.
2. Crypto Wallet
A crypto wallet is required to store the coins that you will use in NFT transactions. Each NFT marketplace has a crypto wallet that corresponds to the blockchain it uses.
3. Prepare Coins
To be able to carry out various activities, such as account registration and NFT transactions, users need to fill their wallets with crypto assets. However, keep in mind that the crypto assets you will use must be supported by the NFT marketplace you use. Here are some crypto coins that can be used:
Axie Infinity
AXS coin from Axie Infinity is one of the largest NFTs by market capitalization, according to Coinmarketcap. In November 2021, the AXS token recorded a market capitalization of US$10,247,008,859.
Coin Engine
Enjin Coin or ENJ is another crypto coin that can be used in NFT transactions. At the end of 2021, ENJ managed to maintain its performance with a market capitalization of around US$3,094,924,191, and a stable price of around US$3.26.
The Sandbox
The SAND token from The Sandbox is another option for transacting NFTs. In December 2021, SANDs continued to improve in performance, with the price of one SAND stabilizing at around US$2.64. The Sandbox’s market capitalization reached approximately US$2,403,476,637 at the end of 2021.
Conclusion
In conclusion, an NFT marketplace is an online platform where NFTs can be bought, sold, and traded. Among the most famous NFT marketplaces are OpenSea, SuperRare, Nifty Gateway, Rarible, Axie Marketplace, BWOPLE, Foundation, and Larvalabs/Cryptopunks.
Meanwhile, several things must be considered before accessing the NFT marketplace, including creating a user account, creating a crypto wallet, and preparing coins.
Furthermore, the importance of good understanding before getting involved in the NFT marketplace is something that should not be ignored. With good understanding, you can reduce risks, make better decisions, and utilize the NFT marketplace wisely.
Ultimately, education and research are the keys to achieving success in the NFT ecosystem, which continues to develop rapidly to this day.
So, now you understand what an NFT marketplace is, the history of its development, examples of the most popular platforms, and things you should pay attention to before accessing it.
Regarding NFTs, you can also read other interesting articles, such as Mir4 NFT and NFT art and a list of 9 NFTs made in Indonesia at INDODAX Academy.
Come on, update your knowledge about the world of digital assets only at INDODAX Academy!
