The nonfungible token (NFT) space is experiencing massive growth at the moment, and more companies are now entering the sector.
Coinbase’s Entry Will Lead To Intense Competition In The NFT Space
Coinbase, one of the leading cryptocurrency exchanges in the world, is making an entry into the nonfungible token (NFT) space. This latest development will see Coinbase compete with other leading crypto exchanges Binance and FTX, in trying to control the new space.
The publicly listed cryptocurrency exchange announced yesterday that it would launch a marketplace that allows users to mint, collect and trade NFTs. Coinbase now urged its customers to sign up to a waitlist for early access to the NFT service.
Dubbed Coinbase NFT, the marketplace would come with social features and would also explore the creator economy. Hence, allowing Coinbase to attract people who make social media content to the platform.
Coinbase’s entry into the NFT space will bring more competition to the rising cryptocurrency and blockchain sector. In recent months, other leading crypto exchanges Binance and NFT, launched their NFT marketplaces. The entry into the NFT space by the leading crypto exchanges doesn’t come as a surprise, with more than $10 billion worth of NFTs sold in the previous quarter.
As more celebrities, athletes, sporting entities and entertainment companies adopt NFTs, it is clear that the sector could experience a rapid boom over the next few years. OpenSea remains the leading NFT marketplace in the world, accounting for more than 50% of the total transaction volume.
However, with the entry of Coinbase, FTX, Binance, and possibly more crypto entities in the coming months, the market competition would increase over the coming years.
ETH/USD chart. Source: FXEMPIRE
Ethereum And Other Programmable Blockchains Are The Winners In the NFT Game
The NFT mania has been a huge win for the programmable blockchains like Ethereum. The NFTs are minted, launched and sold on programmable blockchains like Ethereum, Solana, Cardano and Tezos.
With the increasing adoption of NFTs and decentralized finance (DeFi), these blockchains and their cryptocurrencies will continue to experience a surge in their prices.