3 Types of NFT marketplaces

Sept. 2022, Vincy

Data Source: Footprint Analytics — NFT Marketplaces Analysis

NFT marketplaces are the gateway to owning digital collectibles, blockchain artwork, in-game NFTs and other types of digital assets.

And as the number of NFT owners grows, different kinds of marketplaces have emerged to cater to various ecosystems, use cases and niches. In this article, we’ll go over the 3 main types of marketplaces today.

What is an NFT marketplace?

An NFT marketplace is a platform that allows users to mint, buy, sell, display, and store NFTs.

Whether you want to collect NFTs, or create and trade them, you have to go through a marketplace to enter the world of NFTs.

How do NFT marketplaces work?

Marketplaces are all different, but revolve around similar core actions for users:

Create an account: Buyers and sellers register to use the platform.
Set up a wallet: After registering, users can link their wallets to the account. Most major marketplaces have integrations with the popular crypto wallets, such as MetaMask, WalletConnect, and Coinbase, among others.
List NFTs for sale: Sellers and creators can show their work on the marketplace listings, which includes information about the work such as name, description, floor price, and total NFTs in the collection.
**Browse NFTs: **NFT marketplaces now have advanced search and filtering options to allow buyers to easily find the NFTs they are looking for.
Buy or bid on NFTs: Buyers can buy, bid on, or send offers to purchase an NFT.

All marketplaces have the above functionalities in common. But then they diverge. Here’s how they differ.

General NFT Marketplace

A general NFT marketplace is the go-to for most collectors and creators, allowing people to list all types of digital assets across various styles, prices and features.

Examples of general NFT marketplaces are:

General NFT marketplaces currently have more trading volume than exclusive NFT marketplace or specific NFT marketplaces.

Exclusive NFT Marketplace

Exclusive NFT marketplaces focus on high-end artworks typically issued in small quantities and with approval from the platform to list. The selectivity means that NFTs on this type of marketplace tend to have a much higher average selling price per item than on general marketplaces.

Examples of exclusive NFT marketplaces include:

These platforms mostly list art and collectibles rather than in-game NFTs and community NFTs.

Exclusive NFT marketplaces also have several disadvantages.

Small selection
High selling price
Low liquidity

Specific NFT Marketplace

The third type of NFT marketplace encompases those that serve a specific collection or niche market segment. For example, a trading platform for in-game NFT purchases for a single game (like The Sandbox, for example), or a trading platform only for sports card NFTs by one company (NBA Top Shot). For collectors who track specific collections for research or investment purposes, specific marketplaces track market fluctuations and respond faster than general NFT marketplaces.

Examples of specific NFT marketplaces include:

By focusing on one niche, product or game only, these marketplaces have a relatively small volume of transactions.

Screenshot Source — Statistics from Footprint as of July 28th

Summary

For those new to the NFT industry, the sheer number of NFT marketplaces available now can be intimidating. For most people, OpenSea is synonymous with buying and selling NFTs, but there are many other marketplaces out there.

This piece is contributed by Footprint Analytics community.

The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.

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