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What is NFT Marketplace?
The NFT marketplace is a decentralized trading platform dedicated to NFTs. It is aimed to facilitate the creation and trading of non-fungible tokens (NFT).
The term NFT is receiving increasing popularity over time. You can learn of it from various media or in your surroundings. Each NFT is unique, creating real financial value. Nowadays, the market of NFTs capitalization is expanding rapidly. As reported, the total market value of the NFT market has reached approximately $19.83 billion by April 10, 2022. Up to now, the NFT market has kept breaking its own record, which drives up the prices of each NFT on a continued basis. There is no limit imposed on developers to create an infinite number of tokens in different ways.
In Dec 2021, CryptoPunk #5822 was sold off for 23 million dollars. Taco Bell and other well-known companies have created the NFTs by recommending digital items. According to statistics, the development of the NFT marketplace is of significance to some extent. As the industry cap is rapidly increasing, there are more and more reputable brands following suit.
Crypto Punk #5822
On January 4, 2022, the world's largest NFT trading platform, Open Sea, officially announced its latest round of financing. Led by venture capital firm Paradigm, Coatue Management, the platform raised $300 million, bringing its post-investment valuation to $13.3 billion. The newly-raised funds will be directed primarily to product development, user experience, and investment in the NFT and Web 3.0 communities.
Forbes claims that OpenSea is currently the largest NFT marketplace by volume, rising from $1.1 million per month in volume when it got off to a difficult start to an all-time high of $3.4 billion by August 2021, with $85 million generated in gas fee revenue.
From the case of Opensea, it can be seen that NFTs have evolved into a thriving market that remains on the track of expansion year on year. Despite still in their early stages, NFTs have demonstrated the potential of profitability, which delivers value to both buyers and sellers.
Initially, NFTs emerged as a science project launched mainly by crypto enthusiasts and risk-taking, tech-savvy artists. At present, however, they are now quick to enter the mainstream. Whether for a major brand like the NBA or an emerging independent artist, choosing the right platform for partnership is the crucial first step taken to enhance customer engagement while solidifying the position in this new digital economy.