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Why Competition Between NFT Marketplaces Is Good News

One sector that has weathered the storm relatively well during crypto’s bear market is NFTs. According to a new report, the global he NFT market will be worth $231 billion by 2030, growing at a compound growth rate of 33.7% over the next eight years. However, his NFT market has been on a bit of a rollercoaster ride this quarter, with transaction volume and sales up 533% and 59% respectively compared to Q2 of 2021. Additionally, the Metaverse NFT had a strong quarter, with trading volume for ETH-based collections up 101%. polygon Matic/USD Unfortunately, the collection has decreased by 26%. Overall, he’s growing by 96%, according to DappRadar.

If that positive trend fuels your desire to participate in NFT trading, you are not alone. The recent crypto bull market has been like an electromagnet for investors flocking to NFTs. Either whitelist projects for early entry and sell when a particular project is published, or buy from another user before selling on the ever-growing marketplace. As reported by Chainalysis, a leading crypto analytics firm, in late 2021, “NFTs are far from a solid investment,” but “OpenSea marketplace transaction data shows that only 28.5% of NFTs are mined. It has been shown to be purchased and sold on the platform to make a profit.. However, buying and flipping NFTs on the secondary market from other users has a 65.1% chance of making a profit.” In plain English, what this means is that the average NFT buyer is likely out of luck when it comes to making a profit on a newly created or secondary market NFT trade. .

If those headline numbers aren’t putting you off, what can help you tell tree by tree when it comes to trading NFTs? A little context might help get you started. So the commercial pressure from the bear market and the competition between the NFT markets means that this could be a good opportunity to up your NFT trading game.

NFTs are traded on the NFT Marketplace, a well-organized platform for selling digital collectibles. As a rule of thumb, NFTs are sold at a fixed price and others are auctioned. Opensea is by far his largest NFT marketplace, with a 90% dollar volume market share across multiple marketplaces in 2021. What has changed in recent months, however, is that OpenSea’s market share has started to decline. In response, OpenSea has improved its service with the launch of Seaport, an open-source trading protocol that allows trading multiple NFTs at once. Also, OpenSea’s acquisition of his NFT market aggregator Gem will likely put him up against Uniswap, which recently acquired NFT aggregator platform Genie. Finally, despite the failure of his NFT service on Coinbase, eBay bought marketplace KnownOrigin and partnered with OneOf to launch a series of sports-themed NFT spaces for him featuring iconic athletes. recently announced its first foray.

What hasn’t changed is the fact that most NFTs are released in collections. A collection is a group of NFTs that are all different but share some characteristics. Bored Ape, the most popular NFT collection, has total sales of approximately $2.5 billion. The top 10 NFT collections will exceed $15 billion in transaction value in 2021, accounting for approximately 60% of the total NFT market. The fact that some collections dominated the majority of the market is most likely due to NFT investors preferring to trade within collections. This is because it is easier to evaluate his NFTs in the collection when there are “similar” NFTs to compare against. An experienced investor knows where the money is, so within those collections he trades NFTs.

These NFT traders speculate and identify specific collections with liquidity, trade, and keep flipping until they make a profit. The truth is that most speculative traders do not profit from trading NFTs. Information is key and traders who have information about liquid collections are more likely to make profits Become. Immediate tradability of non-fungible tokens leads to higher liquidity. NFT marketplaces can cater to different audiences, from hardcore traders to novice players, allowing you to expose your assets to a wider pool of buyers.The 2017 ICO boom was instantly driven by liquid tokens NFTs expand the market for unique digital assets, just as they have spawned a new asset class that is based on digital assets.

NFTs also help expand the collateral market for DeFi lending. DeFi lending and borrowing platforms require collateral. These collaterals are typically crypto assets. The introduction of NFTs has made it possible to put other types of assets as collateral. For example, a work of art or real estate can be tokenized as his NFT and pledged as collateral.

Another factor to consider is fraud in the NFT sector. We have seen many bad actors sell and trade NFTs they don’t own or don’t have access to. I believe it is important for all her NFT traders to do their own research to determine the best collection for trading. Simply put, the NFT sector is still growing and there are still some gaps to fill.

Market liquidity is still concentrated in a small number of NFT collections and traders must be able to identify in-demand collections in order to make a profit. Also about to publish a detailed guide to NFTs in a new book, he said he believes the NFT market will strengthen only in 2022. Sol/US Dollarand competition from OpenSea with players all the way to DEX leader Uniswap UNI/USD It shows how dynamic the space is for eBay, the king of e-commerce. Despite the collapse of the wider crypto market with the collapse of Luna Terra, the demand for NFTs has not stopped. I’m also impressed that GameStop’s new marketplace, which launched just a few days ago, is already doing well with him 3,167. ethereum even in trading volume. “

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