Entrepreneurs and artists around the world are interested in creating an NFT marketplace like OpenSea, Rarible, and Axie Marketplace. It’s a profitable business and has helped NFT owners earn millions of dollars by selling their creations on a marketplace. You can also build NFT marketplace of your own.
What is an NFT Marketplace?
To put it simply, an NFT marketplace is a digital platform where people can trade digital assets. With the help of an NFT Crypto Art Marketplace, people can sell, buy, and trade within the virtual world. With the help of a blockchain, NFT marketplaces have a read-only record that holds NFTs, once the NFT token is burned onto the blockchain, the buyer of the NFT gets a proof of ownership that can be verified easily.
Why Do People Own NFTs?
There are many reasons that people own NFTs, some of them are listed below:
- Digital Ownership
NFTs can be verified for digital ownership. It is practically impossible to steal or forge NFTs.
- Collectability
Some people want to build a collection of digital assets and they buy NFTs because NFTs offer unique opportunities that didn’t exist before. Even sports leagues like the NBA, and NFL have created digital collections.
- Investment
NFTs are a great investment for people who are looking to buy assets that increase in value over time. Like traditional art, NFTs are treated as an investment. Beeple’s “Everydays: The First 5000 Days” was sold for $69 million in March 2021. Unlike traditional currencies, NFTs are not subject to inflation, which makes them a preferred investment option for many.
- Community
NFT ownership comes with many perks, some of the NFT owners have turned their NFT projects into communities. There are members-only communities, exclusive merchandise, tickets to virtual meetups and so much more. The Bored Yacht Club is the best example of building a community with an NFT project.
How to Build an NFT Marketplace?
If you are interested to build NFT marketplace, it’s wise to think about what unique stuff you are offering. There is competition among the existing NFT marketplaces and you have to have distinct features to stand out from the rest.
- Define a Niche
The first and foremost thing that one has to do while building an NFT marketplace is to define a niche. Analyze the needs of your target audience, know your competitors and their unique offerings. The most popular niches include artworks, sports, video gaming assets, and property.
- Choose a Blockchain
Choosing a blockchain can be a daunting task as it is one of the most complex parts of building an NFT marketplace. Deciding on a blockchain impacts the other aspects of your venture. You can go with blockchain technologies like Ethereum, which is widely used, or you can select Solana, Cardano, or Polygon. You might need the help of an NFT marketplace development company. Remember that after initial integration, you have to pay a gas fee (which is on every transaction).
You don’t have to operate on a single blockchain for NFT Marketplace Development.
To avoid the limitations of your chosen blockchain architecture, you can opt for multi-chain NFT marketplaces, integrated with many blockchain networks.
You can even implement your own blockchain architecture but you have to take care of security and safety so that people can trust your NFT marketplace.
- Will it Be an Open or Closed Market?
When you are building an NFT marketplace, you have to decide if it’s going to be an open or closed marketplace. While an open marketplace will support an array of tokens, a closed marketplace will use a specific proprietary token. OpenSea currently supports more than 150 types of tokens and is the largest marketplace. An open marketplace allows anyone and everyone to create an account and start listing.
- Specify Commission Fee
Now that you have decided how your marketplace will look and run, it’s time to decide on the commission fee for your NFT Crypto Art Marketplace. It is going to be your monetization model- stay competitive, and don’t undercharge or overcharge. You should study the market, and provide quality along with security.
- Join a Community
It’s always a good idea to connect with your buyers and build a strong community. You can grant rights to new users once your marketplace is ready, and you can form an exclusive club. There is no harm in utilizing traditional social channels and joining a platform like Slack and Discord.
NFT Marketplace: Quick Facts
The global NFT market is expected to grow to $13.6 billion by 2027. In 2023, alone the revenue in the NFT segment is anticipated to reach US$3,546.00m. In the NFT segment, the average revenue per user amounts to US$70.46 in 2023.
By 2027, the number of users is expected to reach 64.45 million.
Summing Up
NFT marketplace development is a great way for entrepreneurs to venture into this profitable business. It takes real effort to build an NFT marketplace, and when you are in the right hands, the process becomes seamless. Antier is the best NFT marketplace development company that takes into account every minute detail to provide clients with robust and scalable projects.
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