How to Choose the Right NFT Marketplace?

In January, the trading volume across all NFT marketplaces exceeded $862 million, up 85% from December. According to Footprint Analytics, the number of major marketplaces grew to 40. 

Then, LooksRare seemingly came out of nowhere, airdropping $LOOKS to traders and exceeding $240 million in trading less than a month since launch. 

With NFTs showing resilience to broader market trends, these marketplaces will likely continue to proliferate as digital collectibles become unglued from the price of Bitcoin. 

The time is now to find the right NFT marketplace for your NFT needs, and this article is here to help. 

6 Things to Consider in an NFT Marketplace

1. Single vs. Multiple Projects

Four of the major marketplaces only support a single NFT project, namely Axie Infinity, CryptoPunks, NBA Top Shot, and Mobox.

Those interested in these NFT projects can go directly to these marketplaces, which have lower fees.

For marketplaces with multiple projects, see the chart below. 

Note: If you don’t have a large budget or are a beginner collector, avoid NFT marketplaces on Ethereum, which have high gas fees.

2. Information Provided by NFT Marketplaces

A good NFT marketplace needs to provide buyers with complete information about the projects, like the number of NFTs available for purchase, the price of each NFT, and more in-depth information such as the number of buys and sells, holders, and historical trading information.

3. Security

A good NFT marketplace needs to have a highly secure environment to protect the creators as well as the buyers. For example, advanced encryption of some private information, as well as requiring identity verification or providing insurance for transactions to prevent fraud.

4. Advanced Search Functions

When buying NFTs, it is important to have quick access to reliable and accurate data. In addition, the platform should provide more visual data to give players a clear understanding of what is happening in the marketplace as well as to aid in determining which NFTs are more worthy of investment.

A good NFT marketplace should provide different search functions to meet the needs of buyers, e.g. specific names, types, or creators.

5. The Convenience of a Digital Wallet

The right NFT marketplace needs to be simple and easy to use, no matter where you are or what device you are using.

It should also provide support for multiple NFT wallets as well as payment options, which is helpful if you want to buy NFTs with the payment method you use in your crypto wallet.

6. Marketplace Ratings

When you decide to buy NFT, you can get a better idea of other people’s experiences from their reviews, allowing you to make an informed decision and what you can expect.

Summary

As NFTs continue to become more popular, 2022 will likely see an influx of more great platforms. With dozens of options for creators and buyers, choosing the right marketplace can help you find the right NFT while getting higher returns.

Date and Author: Feb 16. 2022, Lynn

Data Source: NFT Marketplace Dashboard

What is Footprint Analytics?

Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so users of any experience level can quickly start researching tokens, projects, and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can build their own customized charts in minutes. Uncover blockchain data and invest smarter with Footprint.