OpenSea has been the dominant decentralized platform for users who want to mint, buy, sell and exchange non-perishable tokens (NFT). OpenSea acts more like an NFT aggregator than a gallery, reserving $ 3.25 billion in volume for December 2021 alone, according to Dune Analytics, and the total volume increased by as much as 90,968% from December 2020 to December 2021.
OpenSea, which is no stranger to controversy and criticism, has its share of risks and pitfalls. More specifically, former product manager Nate Chastain discovered the use of inside information to stay ahead and profit from selling NFT pages for the front page of the platform.
On top of the general feeling of mistrust, society felt underestimated after newly appointed CFO (CFO) Brian Roberts hinted at a public launch. However, he quickly reiterated that OpenSea will not release it to the public immediately.
OpenSea may be the best market for NFTs in terms of transaction volume right now, but 2022 is guaranteed to have a handful of competitors looking to overthrow the giant.
Here are five markets for NFT that could shake up the number one challenger in the coming months.
Coinbase seems to depend on elements of centralization as a primary driver of mass adoption. Taking advantage of the growing popularity of NFTs, Coinbase OpenSea competes with the NFT market launch, Coinbase NFT. The queue is reported to have exceeded 1.1 million, more than the total active user base of OpenSea alone.
Monthly active sellers at OpenSea. Source: Dune Analytics.
The announcement of the launch of Coinbase NFT was a signal that captured the growing value that NFT could gain as digital assets continue to grow. By understanding how NFTs relate to culture and commerce, Coinbase NFT is likely to change the order of things. Meanwhile, the project has partnered with groups such as World of Women, DeadFellaz and Lazy Lions.
While the market has not yet launched, the tour alone indicates that many investors either want to learn about the technology for the first time or want to find alternatives to what they are already using.
According to Coinbase, Coinbase NFT will be a peer-to-peer (P2P) network “… with an intuitive design built around a decentralized marketplace.” Initially compliant with the ERC-21 and ERC-1155 standards, the product also plans to support more series in the future.
Coinbase NFT will primarily function as a marketplace, but the company has indicated that it will also function as a place to “strengthen ties”. Today, Coinbase operates in over 100 countries and reports over 73 million active users, while Coinbase customers trade for $ 327 billion every quarter, proving that there is a decent amount of cash in circulation.
In addition to trading high volumes, Coinbase promotes a robust user experience (UX) and user-friendly user interface (UI) design that is simplified and easy to use. While many take to Twitter and complain about the UX / UI design of OpenSea, many other platforms face entry barriers, and OpenSea does not.
Unlike Coinbase NFT, the FTX marketplace was launched in October with a small group of Solana-based NFTs that expanded the 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 secured and user data is logged and stored on its own network. This means that users and collectors to some extent relinquish ownership.
The reason behind the platform being centralized is that the platform tends to impose on its owners less independent privileges and more restrictions due to the securities legislation. Unlike OpenSea, where users have complete autonomy over their digital assets before sale, FTX NFT implements trading mechanisms. As Brett Harrison, president of FTX.US, explained in a statement, “By not demanding gas for things like trading, we will see a lot of price action and price openings on the platform and hopefully attract liquidity overall.”
Matching practices have had such a profound effect on Solana NFT groups that many have had to cancel previously promised royalties as FTX NFT announced that they no longer support projects that give owners such an advantage.
The result came as a result of regulatory concerns in the United States. Projects on the Ethereum network are also checked for compliance with securities laws and that they are not counterfeits.
Thus, OpenSea retains its value as it fully preserves the breadth of NFT.