NFTs just keep getting more popular – and now Coinbase is getting in on the action and launching an NFT marketplace.
The irresistible attraction from NFT results in a huge number of major firms wanting to strike it rich. FTX and Binance are the two companies recently releasing their NFT marketplace. Now it’s Coinbase’s turn to join the trend of creating NFT trading markets.
The US leading cryptocurrency exchange Coinbase has announced today that it will soon launch a marketplace for NFT by the end of 2021, dubbed Coinbase NFT.
Unique digital assets played a significant role in the second quarter of this year, surpassing decentralized apps (dApps) and becoming an element of the long-term rise in the crypto industry.
Billions of US dollars’ worth of NFTs have shifted this year, and it is impossible to ignore the market.
Coinbase Is Launching a NFT Marketplace
Coinbase wants to get in on that sweet, sweet NFT revenue. The NFT area is progressing toward greater trading volumes – and much higher prices.
DeFi has become more competitive and has piqued the public’s interest because, at this time, Ethereum is facing challenges from competitors such as Solana and Terra, who are delivering real advantages.
The response of artists and creators, who are a critical element of the space, can further explain the appeal of NFTs.
NFTs which employ a means of claiming copyright assure that their NFT will be used with their permission and that they will be compensated for any future use via a royalty system that is hard coded into the NFT.
Because of the uniqueness and rarity of each product, creative industries such as fine art and photography have become more appealing than ever. This trend is predicted to continue to extend into a variety of different industries, such as fashion, media, and entertainment.
According to Coinbase’s Vice President Sanchan Saxena, the new marketplace will allow users to issue, buy, sell, and present their artworks in the form of NFT. At the time of launch, the exchange will support NFTs on Ethereum first, then expand to other blockchains.
A Good Move for Coinbase
The exchange has so far over 8 million active users each month, with 68 million verified users. Coinbase’s entry into the NFT industry could create competition for established markets like OpenSea.
Mark Cuban-backed OpenSea is the leading NFT marketplace in the cryptocurrency market at the moment with a transaction volume of over 5 billion USD in the last 2 months.
Coinbase’s launch announcement comes after crypto exchange FTX and its US-based subsidiary introduced a marketplace that supports users in cross-chain NFT trading via the Ethereum and Solana blockchains.
Binance, the world’s largest cryptocurrency exchange, entered the NFT market in June by launching its own marketplace, aiming to reduce transaction costs.
While Binance’s NFT can only be issued on Binance Smart Chain, FTX said it will only support NFT on Solana at the time of launch but Ethereum will be its next target.
Challenges To Ethereum
People are looking for alternative economical blockchains to mine and sell non-fungible tokens as Ethereum gas prices continue to rise (NFTs).
With the emergence of blockchains such as Tezos, Cardano, Polkadot, Polygon, and Solana, proof of stake is gaining popularity, and NFT enthusiasts are shifting away from Ethereum-powered markets.
While we wait for Ethereum’s spectacular merger with proof-of-stake, these eco-friendly blockchains could take on the decentralized digital asset market, where Ethereum is dominating.
Coinbase’s market, like other NFT marketplaces, supports the Ethereum blockchain. Although other blockchains may become more popular, if ETH gas fees remain high.
The greatest concern is that the company has only used Ethereum, and there are no Layer-2 scaling alternatives at the time of launch.
In a blog post, the business indicated that the NFT market will begin with ERC-721 and ERC-1155 compatibility, but that “multi-chain” functionality will be available sooner or later.