NFT market platforms are attracting a big audience, namely artists and creators to the cryptocurrency space. NFTs provide a new way for artists and content creators to control their work. Furthermore it opens p new revenue streams to them. Central to this is the need for market places and exchanges to facilitate the trade of digital goods and services.
Read this post for an explanation of what an NFT is
We believe the TOP 5 NFT trading venues at the moment are:
This is a Mint and Trade Platform where you can either mint and sell NFTs or you can Buy NFTs with Ether. OpenSea is currently part of the Ethereum Eco-system they base the tokens on the ERC20 protocol.
- Axie Marketplace
The Axie Infinity Marketplace is a closed eco system. You can only buy or sell Axie NFTs and cannot interact with the platform using your own 3rd party NFT. This however does not stop it from reaching no2 in the Alexa web traffic ranking
- Larva Labs
The team behind CryptoPunks allow you to Buy and Sell CryptoPunks in browser. You do however need to have the metamask browser extension installed and enabled.
- NBA Top Shot Marketplace
We have this one here because it is underpinned by Dapper Labs which also has a product called Flow (from the team behind CryptoKitties).
Rarible is a multichain NFT market place. meaning you can buy, mint & sell NFTs on multiple blockchains.
NFT Market Place Top 5 Token Sales
- Christie’s Auction House, whilst a more traditional market place, holds the Number One spot thanks to “Everydays: The First 5,000 Days” by Beeple. Metapurse bought the piece on 3 November 2021 for a jaw dropping $69.3 million
- Another traditional auction house, Sotheby’s, briefly held the top spot on the 6th of October 2021, before being relegated to 2nd place. Larva Labs produced CryptoPunk #7523 which sold for nearly $21 million.
- Beeple also holds 3rd spot, this time with the sale of CROSSROAD #1/1 for $20 million on 24 February 2021 using the NiftyGateway platform
- Larva Labs are back again with CryptoPunk #7804 selling for $18million on 3 November 2021 via the OpenSea NFT Market place.
- Finally Larva Labs rounds up the Top 5 with CryptoPunk #3100. This token sold for about $17.5 million, also on the OpenSea Market place.
Fees, Charges and Transaction Costs
OpenSea’s model is easy. They take 2.5% of every transaction that happens on their NFT Markets. Furthermore, users and partners can create NFTs for free at any time.
Axie Infinity is slightly different where they take 4.5% commission from the seller. Conversely, the buyer pays no commission but has to consider the gas fee which will depend on the nature and category of the transaction.
Larva Labs is still old school. The CryptoPunk contract is custom and therefore transactions are on chain and there is no 3rd p[arty commission, you only need to worry about the Gas fees, however all CryptoPunks have been claimed so likely you will only be able to buy them on a third party site.
NBA Top Shot Marketplace only require you to pay network fees for the currency you are working with to fund your account and during its beta period, transaction fees on FLOW are far lower than Ethereum (fractions of a cent in fact)
Rarible have a similar fee structure to OpenSea and also charge 2.5% per transaction however it seems they will have a new fee structure soon, going by the updates on their fees page.
NFT Market Customer Satisfaction
One of the constant threads we come across in the NFT space (and very much so ten years ago when crypto started out), is customer service complaints. People seem to forget that this is bleeding edge technology and the only definite is that some people will make money and some people will lose money. NFT markets are too new to rely on market reviews and going on the experience of other customers. NFTs are bought and traded by tech oriented people either for themselves or for others. If you are unhappy or not satisfied with an NFT purchase or sale, it is likely because you do not understand the market.
That being said, there are many 3rd party service providers bridging the gap, whilst developers improve the service experience of their brands. Once there are more active metaverses this is likely to become and industry. With many new participants the result can only be better customer service.
What to Consider When Choosing a NFT Market
Always understand why you are doing something. Before you decide where you want to create or trade an NFT, you need to be clear on why you are doing it. Firstly, if your sole aim is to make money. Simply creating and selling an NFT is not what you should be doing. In this instance you should rather be scouting new projects or series and reselling.
If you have artistic interest or need utility from an NFT, it doesn’t really matter where you acquire it. More important is that you control the keys required to prove ownership.
How much do you really know about the tech you are getting involved in? Most people make money on NFTs because they understand the technology and the understand the market. Understanding the market is what makes you money. Understanding the technology is what helps you not to lose money.
NFTs are great and there are still thousands of undiscovered use cases. The industry is very new and metaverse development needs to increase to showcase the real utility of NFTs. There are only a handful of trading venues but new and exciting products launch daily. If you are investing , do so with caution. Most importantly enjoy being part of a whole new industry and market
What are your thoughts or which NFT market is your favourite? Leave your comment below.