Finding The Best NFT Platform That Fits Your Needs is More Important Than You May Think
The NFT landscape has grown by leaps and bounds in the past twelve months. Such a booming industry requires a diverse ecosystem of platforms, tools, software, and other infrastructure. Finding the right platform suiting your needs isn’t easy, but there is always something for everyone.
NFT Statistics Keep Growing
The overall trend in the broader NFT industry is very bullish, at least where user growth is concerned. Per Dune Analytics, over 3,1 million unique Ethereum addresses have held a non-fungible token at one point. A very impressive statistic, especially when considering other blockchains that note strong NFT support. Networks to keep an eye on including Tron, Solana, Polygon, Internet Computer, and many others.
While the raw numbers are impressive, so is the overall growth curve. Overall demand for exposure to non-fungible tokens started picking up in early 2019 and has not slowed since. In fact, the growth has accelerated significantly between Q2 2021 and today. The mainstream also takes notice of NFTs, and major brands, companies, and creators exploring new opportunities in the digital realm.
Thanks to the decentralized nature of the industry, there is now a growing variety of platforms accommodating the needs of NFT enthusiasts. Today, there are numerous trading platforms, portfolio tools, decentralized finance (DeFi) platforms supporting NFTs as collateral, and much more. It can be hard to find the right platform that suits your needs right away. Going for the “biggest dog in the yard” isn’t always the best approach.
Top Marketplaces Grow Bigger
Throughout 2021, we can note the majority of NFT-related growth across the various marketplaces. Buying, trading, and selling non-fungible tokens is a crucial aspect of the business. Numerous platforms were launched in recent months, although it will be tough to compete with OpenSea. That platform alone generates billions of dollars in sales every month and shattered all 2021 records in the first half of January alone.
Such a strong increase in growth and trading volume confirms the need for alternative solutions. Centralization will occur when one platform controls the lion’s share of all activity. That is not what the industry is about or the direction it should head in. Established platforms struggle to meet OpenSea’s volume these days, although there is still some growth for other platforms these days.
Alternative marketplaces, including KnownOrigin, Rarible, SuperRare, lavaLabs, and Foundation, try to compete with OpenSea. It is tough to carve out a more significant market share when the Raribles and Foundations of this world do not provide extra functionality or better benefits to its users. Tapping into the same user pool will not facilitate growth in the slightest.
A New Era Of NFT Marketplaces
Thankfully, there are NFT-oriented projects capable of providing something different. The newly launched LooksRare distributes trading fees to $LOOKS holders. Some users acquired $LOOKS as a native airdrop from the project, whereas others have to speculative on its value through secondary markets. Whether that investment will pay off in terms of passive revenue from trading fees remains a mystery. Nevertheless, LooksRare has everything to prove in this industry.
For those who prefer a bit more functionality from their NFTs, look no further than Drops. The DeFi and NFT platform helps users leverage their portfolios for passive revenue generation. Users can borrow funds against their NFTs as collateral or earn returns by lending to others. Otherwise idle assets can now become active yield generating opportunities through the various lending pools.
Moreover, Drops capitalizes on the current and future big trends in the NFT industry. For example, financial and gaming-related non-fungible tokens are set to make a huge impact over the coming years. Presenting users with an option to leverage these assets for financial gain through liquidity, insurance, bonds, or otherwise brings an extra layer of utility to NFTs.
Every NFT enthusiast has to choose how they want to approach this industry. Some prefer buying and holding without any new revenue opportunities. Others may favor putting assets to work and unlocking new income streams. All options can be valid under the right circumstances, but choosing the right platform is crucial to have the best chance at multiple favorable options for the future.