5 NFT marketplaces that could topple OpenSea in 2022

OpenSea has been the dominant decentralized platform for users looking to mint, buy, sell and trade non-perishable tokens (NFTs). OpenSea acts more as an NFT aggregator than a gallery, booking $3.25 billion in volume for December 2021 alone, according to data from Dune Analytics and from December 2020 to December 2021, total volume increased by a whopping 90,968%.

No stranger to controversy and criticism, OpenSea has had its fair share of risks and pitfalls. In particular, the former head of product, Nate Chastain, found the use of inside information to front-run and profit from selling NFT pages for the platform’s first page.

Adding to the general feeling of mistrust, the community felt undervalued after newly appointed Chief Financial Officer (CFO) Brian Roberts hinted at a public launch. However, he quickly reiterated that OpenSea does not intend to release it to the public any time soon.

OpenSea may be the best market for NFT in terms of transaction volume at the moment, but in 2022 there are bound to be a few competitors aiming to topple the giant.

Here are five markets for NFT that could shake up the number one contender in the coming months.

Coinbase NFT

Coinbase appears to rely on the elements of centralization as a primary driver of mass adoption. Capitalizing on the growing popularity of NFTs, Coinbase OpenSea is competing with the launch of the NFT market, Coinbase NFT. The queue reportedly exceeded 1.1 million, which is more than the total active user base of OpenSea alone.

Monthly active merchants on OpenSea. Source: Dune Analytics

The announcement of its launch for Coinbase NFT was a signal that captured the increasing value that NFT can capture as digital holdings continue to proliferate. By understanding how NFTs relate to culture and commerce, Coinbase NFT is likely to change the order of things. Meanwhile, the project has forged partnerships with groups such as World of Women, DeadFellaz, and Lazy Lions.

Although the market has yet to launch, its queue alone indicates that many investors are either keen to learn about the technology for the first time or want alternatives to what they are already using.

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

Coinbase NFT will primarily function as a marketplace, but the company has hinted that it will also serve as a place to “strengthen connections.” To date, Coinbase operates in more than 100 countries and reports more than 73 million active users while Coinbase customers trade $327 billion every quarter, proving that there is a decent amount of cash in circulation.

More than volumetric trading, Coinbase promotes a strong user experience (UX) and smooth user interface (UI) design that is simplified and easy to use. Although many use Twitter and nag About OpenSea’s UX/UI design, many other platforms have barriers to entry, while OpenSea doesn’t.

FTX NFTs

Unlike Coinbase NFT, the FTX market was launched in October with a small group of Solana-based NFTs, which has expanded its collection to include those on the Ethereum blockchain. Unlike OpenSea and Coinbase NFTs, FTX NFTs are not a P2P platform, which means they are centralized and custodian-based, with user data logged and stored on its own network. This means that users and collectors give up ownership to some extent.

The implication of being a centralized platform is that the platform tends to impose less independent privileges on its owners and more restrictions and restrictions due to concerns of securities laws. Unlike OpenSea where users have complete autonomy over their digital assets until sale, FTX NFT implements bidding mechanisms. As Brett Harrison, president of FTX.US, explained in a statement: “By not requiring gas to do things like bidding, we will see a lot of price action and price discovery on the platform, and hopefully generally attract liquidity.”

The law-abiding methods have caused such a strong impact across Solana NFT groups that many have had to cancel previously promised royalties since FTX NFTs announced they would not support projects giving owners such an advantage.

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

As such, OpenSea retains its value because it fully preserves the breadth of NFTs.

Minor hiccups aside, the market has received attention and is weaker than its competitor in fee structure. FTX NFTs have a fee structure of 2%, while Coinbase’s is 2.5%.

The platform doesn’t seem to ignore users who eventually use unrestricted wallets, but its primary focus is on the value in accessibility.

rare

Long before OpenSea hit the top, Rarible was setting monthly trading volumes higher than its peer. Despite opening its community platform with governance token RARI – something that OpenSea users have consistently come to expect – Rarible has not been able to maintain the lead it once had over OpenSea.

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

For Rarible, like the FTX NFTs market, it understands the benefit of a multi-chain 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 volume (primary vs. secondary). Source: Dune Analytics

With its decentralized spirit and multi-chain support for NFTs, Rarible could become a serious contender in 2022.

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Zora presents itself as the champion of Web 3.0 and decentralization as it promotes its completely unlicensed “on-chain” platform. As Decentralized Autonomous Organizations (DAOs) tend to gravitate toward these principles, the platform retains its value in historical purchases such as the $4 million PleasrDAOs. Buy original dog-meme NFT.

Zora has a no-fee structure and focuses most of its efforts on being the cornerstone of the unauthorized protocol. Many cryptocurrency experts are drawn to the idea that artists and creators have greater autonomy and ownership over their creations. If these concerns remain relevant in 2022, Zora will likely see an influx of new users.

magic of aden

Magic Eden is currently the best NFT market on the Solana network, and according to DappRadar, it has been ranked among the top ten NFT markets with a value of $267.14 million since its launch in mid-September 2021.

The number of unique wallets has rebounded and has been steadily increasing in the past couple of months making it a strong competitor to OpenSea. While it is important to note that users are known to have more than one wallet address, this may indicate that there may be fewer unique active users.

OpenSea data on string. Source: DappRadar

The low 2% transaction fee gives the platform a competitive advantage when compared to other markets, and like FTX NFTs, listing is free for users. As seen below, the number of transactions on Magic Eden often doubles or even triples the number of transactions that occur on OpenSea.

Magic Eden on-chain data. Source: DappRadar

Although Magic Eden had more transactions, the amount per transaction was lower than OpenSea. According to DappRadar, Magic Eden has collected more than 4.5 million transactions over the last 30 days while OpenSea has processed less than half that number at 1.7 million, yet it contains just over five times the total volume of Magic Eden.

With the pace of NFTs set and digital holdings continuing to be in the mainstream, 2022 could see a larger demographic whose preferences may not align with OpenSea. Assessing accessibility, regulation, and a better user experience, these five NFT markets are a strong contender for their position at the forefront.

The opinions 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 involves risks, you should do your own research when making a decision.