A Non-fungible token is a unique digital identifier that runs on a blockchain (like Ethereum), a form of a distributed ledger. Non-fungible tokens contain digital files like images, videos, or music. The blockchain makes it impossible to be duplicated or stolen and it’s used as a means to transfer ownership between users. NFTs can be sold or transferred, either in a marketplace, individually, or through a third party.
The NFT market made a huge success in 2021, with billions of dollars worth of cryptocurrencies invested in the asset class. Data from Chainalysis reported that collectors in 2022 have spent over $37billion worth of assets to NFT marketplaces as of May 1, putting them on speed to easily beat the total of $40billion sent in 2021.
In this article, we will cover the most recent and top NFT marketplace in 2022 with detailed information. Enjoy your reading.
Top 10 NFT Marketplaces in 2022
- OpenSea
- Rarible
- NBA Top Shot
- Binance
- Axie Marketplace
- Nifty Gateway
- SuperRare
- Foundation
- Mintable
- ThetaDrop
What is an NFT marketplace
An NFT (Non-Fungible Token) marketplace is a platform where creators can list and sell their unique digital assets as NFTs. NFTs are digital tokens that use blockchain technology to verify ownership and authenticity of digital assets, such as artwork, music, videos, and other digital content.
NFT marketplaces provide a platform for creators to monetize their digital assets and for buyers to purchase and own unique, one-of-a-kind digital collectibles. The marketplace typically charges a fee for listing and selling NFTs, and the transactions are typically conducted using cryptocurrency, such as Ethereum.
There are several NFT marketplaces available, each with its unique features and offerings. Some NFT marketplaces specialize in specific types of digital assets, such as artwork or gaming items, while others offer a broader range of digital collectibles. NFT marketplaces have gained popularity in recent years due to the growing demand for unique and valuable digital assets.
How does the NFT marketplaces work?
NFT marketplaces work as a platform where creators can upload and sell their unique digital assets in the form of NFTs (Non-Fungible Tokens). Here’s a general overview of how an NFT marketplace works:
- Creators mint their digital asset: Creators first mint their digital asset as an NFT on a blockchain platform like Ethereum. This involves creating a unique digital signature that verifies the ownership of the asset and prevents duplication or copying.
- Listing on the Marketplace: The creator then lists the NFT on an NFT marketplace where buyers can browse and purchase NFTs. The marketplace typically charges a fee for listing and selling NFTs.
- Auctions and Sales: Some NFT marketplaces offer auctions, where buyers can bid on NFTs, and the highest bidder wins the NFT. Other marketplaces offer direct sales, where buyers can purchase NFTs at a fixed price.
- Payment and Delivery: Once a buyer purchases an NFT, they typically pay using cryptocurrency, such as Ethereum. The NFT is then transferred to the buyer’s digital wallet, and they become the new owner of the digital asset. The creator receives the payment for the sale, minus any fees charged by the marketplace.
- Reselling: NFT owners can also resell their NFTs on the marketplace or through other channels, such as social media or online forums.
NFT marketplaces provide a platform for creators to monetize their digital assets and for buyers to own unique, one-of-a-kind digital collectibles.
Top 10 NFT Marketplaces: Detailed
1. OpenSea – This is the world’s first and most popular web3 marketplace for NFTs and crypto assets. It allows non-fungible tokens to be sold directly at a fixed price or through an auction.
The platform is very easy to use for beginners, free and fast sign-up, you can also create and mint your nft in the play and it charges a low fee of 2.5% for each transaction carried out.
OpenSea is a very comfortable and reliable platform to showcase and purchase your NFT assets whether as a beginner or a pro.
2. Rarible – This is another well-known platform where users sell and purchase artworks, video game assets, and NFTs.
It allows users to buy and sell using a Rarible token known as RARI. A holder of this token has the power to vote on company decisions such as company policy changes.
Unlike OpenSea, it charges a 2.5% fee on each transaction carried out on the platform, including gas fees. You can also carry out a transaction using your credit card which means you can transact with your local currency.
3. NBA Top Shot – This is where basketball fans watch great moments in basketball history. Video clips, play highlights, and arts can be purchased here for both the National Basketball Association and Women’s National Basketball Association.
This NFT marketplace was built and managed by the NBA and it uses a Flow blockchain which was built by Dapper Labs.
It is easy to sign up, charges a low transaction fee plus gas charges and users can purchase collectibles using credit cards and cryptocurrencies like Bitcoin, Ethereum, DAI, and much more.
Although some of the collectibles are not sold for a cheap price. A LeBron James slam dunk highlight fetched $208,000 in early 2021.
4. Binance – This is one of the largest and most widely used cryptocurrency exchanges which runs on its own blockchain.
Binance added the NFT marketplace in 2021, and they offer typical digital assets like artworks, collectibles, and gaming items. It is easy to use and built with similar technology and layouts as their exchange.
The platform charges a very low fee on every transaction, they deduct a 1% trading fee on each transaction which gives it a significant advantage over other marketplaces.
5. Axie Marketplace – This is the official online shop for the video game Axie infinity.
Players can purchase Axies, lands, and other items as NFTs which they use while playing the game.
Axie Infinity tokens can be sold and purchased on other marketplace and are built on the Ethereum blockchain.
6. Nifty Gateway – This platform was acquired in late 2019 by crypto exchange Gemini, with NFTs known as Nifties which are built on the Ethereum blockchain and are managed by Winklevoss twins, Cameron and Tyler Winklevoss.
This Marketplace is well known for hosting expensive and high-quality NFT sales and it focuses on artworks, especially creativities from top artists and celebrities.
Unlike other platforms, it allows users to make purchases and sales with their credit cards Which creates room for the use of fiat currencies.
7. Superrare – Superrare is a marketplace to collect and trade unique, single-edition digital artworks. The platform includes art, 3D image, and videos but the artwork can be purchased using Ethereum.
The superrare created its own token based on the Ethereum blockchain and can be traded on OpenSea.
There’s a flat 3% fee for every purchase paid by every buyer but charges a 15% fee on the first time an NFT is sold on the primary market.
They’re highly selective with NFT submission and spend so much time reviewing work before it’s available for sale this makes Superrare a perfect marketplace for audiences looking for high-quality NFT artworks.
8. Foundation – Foundation is an NFT marketplace built on the Ethereum blockchain in 2021. This platform is built to enable creators to showcase their work and make a strong connection with their audience.
They have sold NFTs worth more than $100 million.
There are multiple options for selling NFTs on Foundation and surely get paid. They have the Buy Now, Offer, and Reserve Auctions.
These options can be used in parallel which means that NFT can be simultaneously listed as a Reverse Auction, have a Buy Now price, and still receive offers.
9. Mintable – This is an open marketplace just like OpenSea and Rarible for buying and selling of NFTs.
Mintable has a gas-free minting policy and it is built on the Ethereum blockchain.
Users need an Ethereum-enabled wallet to bid or purchase NFT on Mintable, it is non-exclusive meaning you don’t need to go through the approval process and it has a low amount of activities within the platform compared to OpenSea.
10. ThetaDrop – ThetaDrop is built for the decentralized distribution of videos and TV on the internet, it is the world’s first real-time NFT marketplace and is powered by the Theta blockchain.
Creating and transacting non-fungible tokens on the Theta network is less costly. Before you can make transactions in the ThetaDrop platform, you must purchase the Theta token.
Tips to choosing the best NFT Marketplace
Choosing the best NFT marketplace can be a daunting task, as there are several factors to consider. Here are some tips to help you choose the best NFT marketplace for your needs:
- Reputation: Choose a reputable NFT marketplace that is well-known and trusted in the industry. Look for reviews and ratings from other users and do your research to ensure the marketplace has a good track record.
- User Experience: Consider the user experience of the marketplace, such as ease of use, search functionality, and overall design. A user-friendly marketplace can make it easier to find and purchase NFTs.
- Fees: Consider the fees charged by the marketplace, including listing fees, transaction fees, and withdrawal fees. Make sure you understand the fee structure and how it impacts your profits as a creator or your purchasing power as a buyer.
- Type of NFTs: Consider the types of NFTs available on the marketplace. Some marketplaces specialize in specific types of digital assets, such as artwork or gaming items, while others offer a broader range of digital collectibles. Choose a marketplace that aligns with your interests and goals.
- Community: Consider the size and engagement of the marketplace’s community. A vibrant and active community can provide valuable insights and opportunities for networking and collaboration.
- Security: Look for a marketplace that offers strong security measures, such as two-factor authentication and cold storage of funds. This can help protect your assets and transactions from fraud and theft.
By considering these factors, you can choose the best NFT marketplace that meets your needs and goals as a creator or buyer of digital assets.
What is minting?
Minting is the process of creating a new digital asset as a Non-Fungible Token (NFT) on a blockchain platform, such as Ethereum. Minting involves creating a unique digital signature that verifies the ownership of the asset and prevents duplication or copying.
When an NFT is minted, a new entry is created on the blockchain that contains information about the asset, including its ownership and metadata, such as the name, description, and image. This information is stored on the blockchain permanently and can be accessed by anyone with access to the blockchain.
Minting is an important step in creating and selling NFTs because it establishes the ownership and authenticity of the digital asset. Once an NFT is minted, it can be listed for sale on an NFT marketplace, and buyers can purchase and own the unique digital asset. The creator of the NFT typically receives a percentage of the sale price, and the rest goes to the buyer.
Minting has become a popular way for creators to monetize their digital assets, such as artwork, music, and videos, and for buyers to own unique and valuable digital collectibles.
Read Also: How to get an NFT whitelist
Is NFT good for investment?
The value of an NFT (Non-Fungible Token) as an investment can be highly volatile and unpredictable. While some NFTs have sold for millions of dollars, the market is still relatively new and speculative. As with any investment, there are risks involved, and investors should carefully consider their financial goals and risk tolerance before investing in NFTs.
Here are some factors to consider when evaluating NFTs as an investment:
- Rarity and uniqueness: NFTs that are rare and unique may have higher potential value due to their scarcity and desirability.
- Popularity and demand: NFTs that are popular and in high demand may have higher potential value, as more buyers compete for ownership.
- Creator reputation: NFTs created by well-known and respected artists or creators may have higher potential value due to their reputation and following.
- Authenticity and provenance: NFTs with strong authentication and provenance may have higher potential value, as buyers seek to ensure the legitimacy and authenticity of the digital asset.
- Market trends and sentiment: NFT values can be influenced by market trends and sentiment, which can be unpredictable and subject to change.
It’s important to note that investing in NFTs is speculative and involves risks, and investors should only invest what they can afford to lose. It’s also important to do thorough research and due diligence before investing in any NFT.
Wrapping Up
NFT (Non-Fungible Token) marketplaces are platforms that facilitate the buying and selling of digital assets that are unique and cannot be replicated, such as digital art, music, videos, and other collectibles.
There are several popular NFT marketplaces, including OpenSea, Rarible, SuperRare, Nifty Gateway, and Foundation. These marketplaces allow creators to upload their digital assets, set a price, and sell them directly to buyers. The transactions are typically conducted using cryptocurrency, such as Ethereum, and the marketplace takes a commission on each sale.
The NFT market has experienced explosive growth in recent years, with sales increasing from $13.7 million in 2018 to over $10 billion in 2021.