Cryptocurrency

Will aggregator marketplaces become the go-to places to buy NFTs?

November 2022, Vincy

Data Source: Footprint Analysis – Overview of NFT aggregator trends

While there are several NFT marketplaces to choose from when purchasing digital assets, switching between them all the time is inefficient. Another problem with fragmented markets is that you have to pay multiple gas bills when buying from different markets.

NFT aggregators are efficient as they allow people to buy multiple NFTs in bulk from various platforms, thus saving on gas bills. We are also experimenting with Places, Pledges and NFT Tokenization.

Will they be the go-to place to buy NFTs?

Early NFT Marketplace

From 2016 to 2018, the first NFT trading marketplaces OpenSea, MakersPlace and SuperRare emerged. Since then, OpenSea has more than 90% of the market share, despite scandals involving unstable trading systems, hacking attacks, and even theft of user NFT assets.

Footprint Analysis - Trading Volume by Marketplace - 2021
Footprint Analysis – Trading Volume by Market – 2021

In early 2022, both X2Y2 and LooksRare began challenging OpenSea for decentralization, low fees and platform revenue sharing. This has started to divide the NFT market.

Footprint Analysis - OpenSea & LooksRare & X2Y2 Volume Market Share
Footprint Analysis – OpenSea, LooksRare, X2Y2 Volume Market Share

However, these platforms have been slow to address the issue of batch purchases that NFT aggregation platforms have gained a foothold in.

Footprint Analysis - NFT aggregator list based on 90 days
Footprint Analysis – NFT Aggregator List Based on 90 Days

What problem does aggregation solve?

According to footprint analysis, The percentage of transactions on Ethereum-based aggregate trading platforms (13 platforms) gradually increased from August to October, reaching a maximum of more than 18%, and then resumed normal trading. This shows the trend that the NFT market is gradually moving into aggregate trading.

Footprint Analysis - Aggregator Daily Ratio
Footprint Analysis – Aggregator Daily Ratio

However, many developers are beginning to seek value innovation, seeking benefits such as increased convenience and increased efficiency. There are clear demarcations between existing markets, creating the types of services that users need.

OpenSea then upgraded its product and acquired a competitor.

  • In April, OpenSea acquired NFT aggregation protocol GEM.
  • In May, OpenSea allowed users to trade NFTs using non-cryptocurrency payment methods.
  • In October, we announced that bulk ordering and bulk buying functionality was officially supported, allowing users to list and purchase up to 30 products in a single transaction on the platform.

A comprehensive market improvement is expected through various features, lower fees, and time costs to search for NFTs. For example, Element aggregates the layouts of all the most popular blockchains (Ethereum, BNB Chain, Polygon, Avalanche, Solana) to enable cross-chain transactions and grow its user base.

With the emergence and development of various centralized trading markets, users can reduce tedious trading operations, and users can reduce transaction costs and NFT search time costs to batch list and purchase operations. .

Overview

OpenSea has almost monopolized the NFT trade for several years. It has become the go-to platform for buying and selling NFTs even as other marketplaces with competitive features are launched. However, NFT aggregators offer unique models and solutions to industry problems.

Contributors to this work are footprint analysis community.

The Footprint Community is a place to help data and crypto enthusiasts around the world understand and gain insights about Web3, the Metaverse, DeFi, GameFi, or any other area of ​​the emerging blockchain world. Here you’ll find vibrant and diverse voices who support each other and move the community forward.

Footprint website: https://www.footprint.network

discord: https://discord.gg/3HYaR6USM7

twitter: https://twitter.com/Footprint_Data

Posted In: Analysis, NFT

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