Website Development and Website Promotion Centum-D Approaching the NFT market. Before & After

Approaching the NFT market. Before & After

NFT is on the lips of many users of the digital space. The concept originated back in 2014. However, it was in 2021 that everyone started talking about it owing to high-profile events. NFT stands for non-fungible tokens, which are sold in the shape of a wide variety of digital content. One of the biggest NFT sales reached $69 million, after which the NFT market became a buzzword, discussed by everyone, from entrepreneurs to investors. The NFT market holds great promise until 2028. But is everything as unambiguous as projected? What are the genuine prospects, and who should enter the NFT platform? More about it in this blog. 

What is NFT? 

What is NFT

Before speaking in more detail about NFTs, we should determine what NFT means. NFTs are digital assets that users can buy and sell based on blockchain. Both individuals and entire businesses can mint their digital content (such as songs, art, websites, and even tweets) into the NFT and sell it to anyone who wants it. Buyers successively receive their purchases not as tangible items but only digitally. Another peculiarity of NFT assets is that they are prone to run out, following the example of physical goods. Put differently, there is only one unique version of NFT assets, and it’s one owner. Each purchase has a code that identifies its ownership. 

The state of the NFT market: comparative statistics 2021-2022 

Many people think NFT is a trend. However, last year’s numbers prove that the popularity of closed-source NFT trading platforms will not fade in the next few years. 2021 was a breakthrough year for many business trends, and the NFT market was no exception, as its value has reached 41 billion dollars. Experts with reliable forecasts express further rapid growth of this trading platform with the probability of increasing the value of the market by 40% each year until 2028. Yet, considering the geopolitical and other events worldwide background, the performance and trends of the NFT market differ from those predicted. 

Below, we will provide comprehensive statistics on NFT trades for 2021-2022. 

Total volume of USD traded$10,7 billion$8,7 billion-25%
Volume of salesOver $12 million$10 million-20%
Buyers$1,5 million$1,1 million-25%
Active Wallets$1,8 million$1,2 million-33%
Total Profit$3,5 billions$1,8 billion-46%
Total Loss$1,1 million$1,4 million+23%
Average Price$849$798-6%

Based on the data above, we can see a dramatic drop in total NFT trading volume since the beginning of 2022. The NFT market is just developing and is now in a rebuilding phase, during which some digital assets are losing consumer interest. Therefore, price and sales growth are decreasing. However, it is still early to talk about the failure of this trend. Start-ups and experienced entrepreneurs can use this time of lull to refocus. To do this, it’s important to understand what is NFT platform and its fundamentals. In addition, it will help you compare your options and choose the most favorable position. 

The landscape of NFT platforms and their features 

Many trading platforms in the NFT market have advantages and disadvantages. We can divide them into two main types: 

  • Universal trading platforms concentrate a wide range of goods in their arsenal. They are like eBay or Amazon, but offer fewer specialized services;
  • Niche peer-to-peer non-fungible token websites. They are more highly specialized marketplaces that focus on one thing but offer a more comprehensive range of services. 

So, for example, the most popular universal NFT marketplace is OpenSea. Here you can find NFTs from various categories: music, sports, and art, and you can pay not only by credit card but also by cryptocurrency. Such NFTs have a wide customer base but offer minimal additional services. 

SuperRare, on the contrary, is the most famous NFT art marketplace, which sells only works of art by notable contemporary artists. Such marketplaces offer many additional services. For example, the brand mentioned above offers extensive curatorial and recommendation services. In addition, niche marketplaces may also provide the creation of NFT itself, marketing, portfolio trackers, etc.

How do you choose the right NFT marketplace?

If you have a company with a fairly large target audience and a wealth of intellectual property, partnering with niche NFTs will be more profitable for you. Of course, you’ll have to make a large initial investment, but it’s odds-on to pay off as this platform uses its niche expertise to give you a smooth start and continued success. However, if you need to know what kind of digital content you want to create, you’ll have to figure it out. 

Companies whose products have more appeal and recognition, such as McDonald’s or Coca-Cola, will do better with universal trading platforms.

How to Build an NFT Marketplace 

How to Build an NFT

If you want to use NFT as a place to build your business, you must understand what is the NFT market. Primarily, it would help if you decided what you want to trade and what is your target audience. The most trending niches for trading for 2022 are: 

  • crypto art marketplace
  • collecting
  • games
  • metaverses
  • utilities

In addition, you need to decide on a marketing strategy to help you successfully promote your product, attract customers and increase audience engagement. By engaging the services of professional digital marketers, you can stay in tune with today’s trends and get the proper feedback from your work. Digital marketers at Centum-D are always on top of all the changes and latest trends in the digital space, so they are always full of creative ideas to grab customers’ attention. 

Below, we’ll highlight a few steps to make it easier for you to imagine how to make an NFT marketplace:

  • Define your target audience

As mentioned above, this is a fundamental step. Experts advise following a vertical marketplace, which involves presenting products to a specific group of consumers.

  • Choose your blockchain

It would be great if your NFT site supported multiple blockchains. However, if that seems too complicated or costly for you right now, then Ethereum is your best bet. 

  • Define user roles

After forming your working team, you can define their roles. It’s not much. You can offer artist and administrator roles. 

  • Decide on your project and design.

Work on the design documentation. It will be useful for you in the future. 

  • Start implementation

Now, you can start implementing your project. You can do this on your own or seek the services of developers at NFT This will save you a lot of time and costs. 

  • Integrate smart contracts

A smart contract is essential to pre-define the NFT market and develop a unique identifier for each NFT.

  • Test

Before you launch your marketplace, conduct a test deployment. This will allow you to ensure that everything works properly and looks like you imagined. 

These tips on how to build an NFT marketplace will help you for an easy start. Save your nerves, costs, and time by sticking to the basic rules of creating an NFT platform.

Future Prospects for the Non-Fungible Token Market 

Looking at the trading statistics on NFT platforms for 2022, entrepreneurs can conclude that investing in this niche should perform more cautiously. This market now is larger and, hence, more demanding. Still, deploying a business on NFT platforms is more favorable than the traditional way, say, if you wanted to open an online store like Amazon. This is because NFT marketplaces are more open, and it’s unnatural for them to create monopolies. Also, diversity is important to this marketplace’s customers. Two companies from the same industry can freely coexist as long as their products and services differ. 

Try your hand at the NFT market if you have something to offer or an idea. First, research existing trade markets and match them with your offerings and business goals. Then, if you find something that fits, go for it! 

The non-fungible token market is still growing and has a high potential for further development. However, it has already proven its usefulness to consumers and retailers alike. Regardless of the size of your business, even if you are a budding sole trader, you can achieve unexpectedly gratifying results with the right platform.

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