What is an NFT Marketplace?

NFT came onto the scene in 2021 and has become a niche within cryptocurrency ever since. Today, these digital collectibles are finding increasing use cases across several industries and sectors. But where are NFTs sold and where can you buy them if you want to own one from your favourite collection?

TL;DR

• NFT marketplaces are platforms dedicated to facilitating NFTs
• Most of the time, these marketplaces are blockchain-specific
• Different NFT projects can list their art and collections on an NFT marketplace

What is an NFT Marketplace?

An NFT marketplace is an online platform that facilitates the buying and selling of NFTs. These platforms serve as a place where collectors and creators can conduct trades, exchanging payments for digital art. Usually, these online platforms make it possible for collectors to acquire artwork by paying in cryptocurrency. Some NFT marketplaces also integrate debit/credit card options for collectors to make payments.

On an NFT marketplace, collectors have access to several art projects that are listed on the platform. They can easily check out the project details such as project team, floor price, highest selling art, traits, and related information.

It is also possible for collectors to view a collection’s market performance in terms of trade volume, the number of transactions, and the number of holders. All of these information makes it possible for a collector to evaluate a project and make an informed decision about collecting such art.

Marketplaces are Blockchain-Specific

Most NFT marketplaces that exist at the moment are blockchain-centric. This means that they operate on, and serve as marketplaces for specific blockchains. This, in large part, could be due to the lack of an inherent interoperability among blockchains.

For example, on the Ethereum blockchain, there is Opensea (which is by far the biggest NFT marketplace on any blockchain), Rarible, SuperRare, and others. On the Solala blockchain there is Solsea, and Solanart, among others, while there is JPG Store, and CNFT on the Cardano network.

Conclusion

NFT marketplaces are central to how the NFT ecosystem functions. They help create a melting point where collectors and creators can reach an agreement. and exchange values. They will continue to be relevant as the NFT space continues to grow.