5 NFT marketplaces that could topple OpenSea in 2022

OpenSea has been the dominant decentralized platform for users looking to create, buy, sell, and trade non-fungible tokens (NFTs). Serving more as an NFT aggregator than a gallery, OpenSea blocked $ 3.25 billion in volume for December 2021 alone, according to Dune Analytics data, and from December 2020 to December 2021, the total volume increased by 90.968% .

Used to controversy and criticism, OpenSea has had its fair share of perils and pitfalls. Most notably, his former product manager, Nate Chastain, found he was using inside information to get started and profit from selling the platform’s front page NFTs.

Adding to the general feeling of mistrust, the community felt devalued after new Chief Financial Officer (CFO) Brian Roberts hinted he was going public. However, he quickly reaffirmed that OpenSea had no plans to go public anytime soon.

OpenSea may currently be the number one NFT market in terms of transaction volumes, but in 2022 there are bound to be a handful of competitors aiming to overthrow the giant.

Here are five NFT markets that could potentially shake the main competitor out of its place in the months to come.

Coinbase NFT

Coinbase appears to be relying on elements of centralization as the main driver of mass adoption. Taking advantage of the growing popularity of NFTs, Coinbase rivals OpenSea by launching its NFT marketplace, Coinbase NFT. According to reports, the waitlist has exceeded 1.1 million, which is more than OpenSea’s only active user base.

Monthly active traders at OpenSea. Source: Dune Analytics

The announcement of its Coinbase NFT launch was a signal that captured the growing value NFTs could capture as digital collectibles continue to become mainstream. Understanding how NFTs connect culture and commerce, Coinbase NFT has the potential to turn the order of things upside down. During this time, the project has established partnerships with collections like World of Women, DeadFellaz and Lazy Lions.

While the market is yet to be launched, its waiting list alone suggests that many investors are either keen to gain exposure to the technology for the first time or want alternatives to what they are already using.

Based on a statement made by Coinbase, Coinbase NFT will be peer-to-peer (P2P) “… with an intuitive design built on a decentralized marketplace.” Initially following the ERC-21 and ERC-1155 standards, the product also plans to support multi-channels in the future.

Coinbase NFT will function 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 has over 73 million active users, while Coinbase customers trade a quarterly volume of $ 327 billion, proving that there is a decent amount of cash in circulation.

More than volume of trade, Coinbase touts its robust user experience (UX) and transparent, streamlined, and user-friendly user interface (UI) design. Even though many are turning to Twitter and to complain Regarding the UX / UI design of OpenSea, many other platforms have barriers to entry, unlike OpenSea.

NFT FTX

Unlike Coinbase NFT, the FTX marketplace launched in October with a small collection of Solana-based NFTs and has expanded its collection to include those on the Ethereum blockchain. Unlike OpenSea and Coinbase NFT, FTX NFT is not a P2P platform, which means that it is centralized and maintained with user data being recorded and stored on its particular network. This means that users and collectors are relinquishing ownership in a certain sense.

The implications of being a centralized platform are that the platform tends to impose less stand-alone benefits on its owners and more restrictions and limitations due to issues with laws on the rights. securities. Unlike OpenSea where users have full 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 offers, we’re going to see a lot more price action and price discovery on. the platform, and we hope that in general attracts liquidity ”,

Its law-abiding methods exerted such influence on the Solana NFT collections that many had to revoke their previously promised royalties, as FTX NFT announced that it would no longer support projects granting its owners such a benefit.

The consequence came as a result of regulatory concerns in the United States. Projects on the Ethereum network are also vetted to ensure that they comply with securities laws and to ensure that they are not counterfeit.

As such, OpenSea retains its value because it retains the full scope of NFT collections.

Regardless of its minor issues, the market has gained attention and is undermining its rival in terms of pricing structure. FTX NFT has a 2% fee structure, while Coinbase’s is 2.5%.

The platform also doesn’t seem to despise users who might use non-private wallets, but its main focus is the value of accessibility.

Scarcity

Long before OpenSea peaked, Rarible had higher monthly transaction volumes than its counterpart. Despite opening up its platform to the community with its RARI governance token – something OpenSea users have always anticipated – Rarible has not been able to maintain the lead it had over OpenSea .

In November, the platform’s total value in volume was 4% higher than in October, with an estimated average of $ 18.2 million. However, its total monthly volume is pale compared to that of OpenSea, given that its daily volume averages are at least five times higher.

To the benefit of Rarible, just like the FTX NFT marketplace, it understands the benefits of multi-channel strategic partnership. Rarible has already launched its support for NFTs on the Flow and Tezos blockchain, and there are plans to support Solana and Polygon in the near future.

Monthly sales in volume (primary vs secondary). Source: Dune Analytics

With its decentralized ethics and multi-channel NFT support, Rarible could become a serious competitor in 2022.

Zora

Zora is touting himself as a champion of Web 3.0 and decentralization as he touts his entirely “on-chain” unlicensed platform. As Decentralized Autonomous Organizations (DAOs) tend to gravitate towards these principles, the platform retains its value in historic purchases like PleasrDAO $ 4 million purchase of the original NFT doge-meme.

Zora has a no-cost structure and focuses most of its efforts on the cornerstone of the No-Authorization Protocol. Many crypto experts are drawn to the idea that artists and creators have more autonomy and ownership over their creations. If these concerns remain relevant in 2022, it is possible that Zora will see an influx of new users.

Magical eden

Magic Eden is currently the number one NFT marketplace on the Solana network and, according to DappRadar, it is ranked among the top ten NFT marketplaces with $ 267.14 million since its launch in mid-September 2021.

The number of unique portfolios has rebounded and has grown steadily over the past two months, making it a serious competitor to OpenSea. While it’s important to note that users are known to have more than one wallet address, perhaps suggesting that there could be fewer unique active users.

OpenSea string data. Source: DappRadar

The low 2% transaction fee gives the platform a competitive advantage over other markets, and like FTX NFTs, the listing is free for users. As shown below, the number of trades on Magic Eden doubles or even triples the number of trades made on OpenSea.

Data on chain from Magic Eden. Source: DappRadar

Although Magic Eden had a higher number of transactions, the amount per transaction is lower than 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 at 1.7 million, but it has 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 population whose preferences may not align with OpenSea. By promoting accessibility, regulation and a better user experience, these five NFT marketplaces are strong competitors to take their place in the lead.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.