Marketplaces like Axie Infinity, OpenSea, Rarible, etc. are epicenters for NFTs funding. Why so? Fact is they host multiple NFTs, opening doors for more revenue in comparison to direct NFT development and selling.
Quick trading, high interoperability, transparency, ample liquidity are appealing features of NFT marketplace. Nifty Gateway, art collectibles marketplace is selling in millions and attracting tons of artists and investors. Similarly, Axie Infinity is making waves.
A custom white label solution includes, instant user registration (artists, project creators, gamers, etc.), integration of crypto wallets, helps in processing transactions, gas fees, auction charges, bidding fees etc., NFTs creation and bidding.
In this blog, we will try to cover NFT marketplace development, factors for choosing, types of marketplaces, features, timeline, cost and some important tips.
Table of Contents
What is NFT marketplace?
An NFT marketplace is where you can sell, buy and create digital assets. Enables you to preserve, trade and mint NFTs easily.
Usually tokens are auctioned or purchased at fixed price. Buyer or investor must have a crypto wallet to make transactions on an NFT marketplace.
Investors can store tokens on a wallet. However, each marketplace support particular tokens or either has its own tokens/ NFTs. Fund your crypto wallet before hand and then go for bidding.
Factors for choosing NFT marketplace
1-Kind of digital asset you want to buy or sell or create
First, you need to decide the kind of digital asset you want to buy or sell or create. You can convert video, gif, meme, gaming asset, collectibles etc. into tokens on a blockchain network (Ethereum commonly).
Whatever you want with a digital asset, you need to think of its form. Interested in gaming assets or art collectibles? Narrow down your interest.
2-Type of tokens support for a marketplace
Another important factor while choosing NFT marketplace is the variety of token support. If a marketplace is offering wide range of token support, that must be ideal for large number of NFT investors or buyers. Make sure, you fund your blockchain wallet with the right type of token so that you could participate in auctions or site activity.
Types of NFT marketplaces
1-General (OpenSea, Rarible, & Mintable)
A type of marketplace which is open-ended and sells almost all sorts of digital assets/NFTs on its platform. OpenSeo, Rarible and Mintable are perfect examples.
Let’s take OpenSea as an example. It is widely popular NFT marketplace, free for sign up and offer extensive listings/ categories/ offerings.
Such marketplaces has -easy-to-use NFT minting process. They support artists and creators by providing user friendly processes.
General marketplaces support different payment tokens like OpenSea supports more than 150 different payment tokens.
2-Artwork selling (CryptoPunks, SuperRare, Foundation, & Nifty Gateway)
A marketplace where you can bid on digital art. They sell art, videos, 3D images, gifs, memes and collectors can buy artwork using Ethereum blockchain network.
These marketplaces have strong communities and they invite artists on the platform and buyers simply need crypto wallet with relevant tokens. With relevant means the ones supported by the particular marketplace.
They support various tokens and sometimes they launch their own token.
Let’s take Nifty Gateway as an example. They faciliate sale of most popular digital artists like Beeple and Grimes. An art curation platform by crypto exchange Gemini.
3-In-game assets (Axie Infinity)
A platform for selling video game assets. Axie Infinity is an ideal example for selling in-game assets. Axies, they sell, can be bought and trained and competed against other axies for earning rewards.
On Axie marketplace, players can always buy new Axies, entire game lands and other accessories as NFTs inside the game.
Here we took Axie Infinity example because they have the largest selling in-game assets in the NFT marketplaces. They have Axie Infinity tokens built on Ethereum, can be purchased and sold on other marketplaces and on other cryptocurrency exchanges.
4-Collectibles (NBA Top Shot)
A marketplace focused on fanbase collectibles. NBA Top Shot is a popular collectibles marketplace where NBA fans mint collectible moments from NBA (video clips and play highlights).
Mostly, its a closed marketplace as in case of NBA Top Shot, you can only buy and sell from Top Shot and used Flow blockchain.
Anyone can buy collectibles as usually they are of few dollars.
What should you know about NFT marketplace development?
There are four elements involved in NFT marketplace development.
How does NFT marketplace operate?
Step 1 – User sign up
Step 2 – Crypto wallet setup (must have marketplace tokens from where user intends to buy)
Step 3 – Build/create NFT and define characteristics
Step 4 – NFT configuration on the marketplace
Step 5 – List digital assets/ NFTs for sale
Step 6 – Buyers/ investors bid whenever auction happens
Step 7 – Wait for completion of moderation
Step 8 – After auction ends, the marketplace transfers cryptocurrency / digital goods.
Marketplaces use smart contracts for transactions as these contracts connect buyer and seller and share the relevant information associated with the NFT.
Common features of an NFT marketplace
NFT marketplace technology stack
The average time required for developing NFT marketplace with a simple structure is 3-4 months.
Features rich (general marketplace) requires 4-6 months.
Basic NFT marketplace with minimal features cost you around $30,000 – $50,000
Complex NFT marketplace cost you around $80,000 and above
Some useful tips no one has shared so far
1-Pick up your specific niche for NFT market development. If you can’t conceptualize it, discuss it with business and development team for strategy, features, timeline and cost estimates.
2-Should target vertical market and not horizontal market.
3-Use smart contracts token generator since the back end development is different.
4-Hire an NFT developer for better functionality.
5-Cost and duration depends on proposed solution i.e. readymade or custom.
With the last year peak performances of NFTs, we can totally rely on the fact that NFTs are here to stay. Now is the high time to think and opt for NFT marketplace development. Here our piece of advice is to go with custom development as readymade solutions are with security issues.