If you know how to invest in NFT marketplace development, you can make millions of dollars instantly.
Find it hard to believe?
Everydays: The First 5000 Days is the most costly NFT which created a sensation in the market. This digital artwork was sold at an auction house and purchased by a cryptocurrency investor who made the payment for this NFT in ETH.
Do you know what the sale price was? It was $69.3 million.
Human One, a hybrid physical and digital artwork NFT was sold for $28.9 million at the same auction house in 2021.
Cryptopunk #The 7523 uniquely generated pixel art character on Ethremue’s Blockchain was sold out for $11.75 million at Sotheby’s auction in 2017.
Cryptopunk #3100 sold for $7.67 million, Cryptopunk #7804 sold out for $7.57 million, and there are still many NFTs that have made million dollars.
NFT is the hottest trend in today’s market. In 2021, the NFT market alone exceeded the $40 billion figure. Brands, companies, tech entrances, business ventures, startups, and investors are heavily chasing after NFTs considering its present fast growth and future prospects.
OpenSea- the biggest NFT marketplace shared its report saying its total value reached $13 billion after a recent jump in the user base. Axie Marketplace, NBA Top Shot, Larva Labs, Rarible, SuperRare, Foundation, Mintable are the popular NFT marketplaces that are making millions and billions of dollar revenues.
But how successful are these NFT marketplaces successful? There are over hundreds and thousands of NFT marketplaces currently running on the Internet, but why are these platforms generating such huge revenue?
It is because most NFT marketplaces have certain limitations and none of them can fully satisfy and meet all expectations of users. But the top NFT marketplaces which are earning billion dollars are successful because they specialize in offering generic services and premium features to the most popular NFT classes, rather than focusing exclusively on NFT categories.
If you are an aspiring business person who wants to develop an NFT marketplace that makes huge revenues, here in this NFT marketplace development guide, MobileCoderz will discuss how to create an NFT marketplace that makes you successful.
So let’s get started…
What is NFT?
NFT is a non-fungible token which is a digital asset minted on a certain blockchain network. NFT could be any type of digital asset like music, video, image, artwork, metaverse which are encrypted with a unique code. NFTs are unique cryptographic tokens which cannot be replicated and exist on a blockchain network. They can represent real-world objects in encrypted digital form as well.
NFT has a unique digital signature or encrypted code which makes it impossible to be exchanged, hacked, or equal to one another. Therefore, they are called non-fungible NFTs. One NBA Top Shot Clip is not equal to one RARI (Rarible’s currency). They both are NFTs but they can’t be exchanged for the same price or same value.
Most popular examples of NFTs involve
- Digital version of an original physical artwork
- In-game item
- NFT art app
- Creative writing
What is the NFT Marketplace?
NFT marketplace is the digital platform where people list out their NFTs for sale. It is like an eCommerce platform where NFT creators from all over the world list out their NFTs for sale and buyers or investors who are interested in purchasing NFTs. To put it in a nutshell, NFT marketplace is an online trading platform for NFTs.
So to use these marketplaces, a user needs
- A crypto wallet
- A definite amount of coins in the wallet
- A user account
Top NFT Marketplaces in 2022
- Axie Marketplace
- Nifty Gateway
- Larva Labs
- NBA Top Shot Marketplace
- Theta Drop
What is NFT Marketplace Development?
NFT marketplace development is about creating an NFT marketplace. Developers, programmers plan how to develop the NFT marketplace that allows people to sell and buy NFTs on a common platform.
Developers use blockchain-based technologies including Ethereum, Solana, Cardano, Binance Smart Chain, and Polygon to create the features and functions of the NFT marketplace. Now you have a basic understanding of the NFT marketplace. Let’s know in this NFT marketplace development guide, how does NFT marketplace work.
How does an NFT Marketplace work?
The purpose of developing the NFT marketplace is to allow users to create. sell, and buy assets in the form of non-fungible tokens. This marketplace takes a certain fee or commission from the NFT seller usually between 2.5-5% of the transaction done.
NFT creators or sellers receive profits in terms of a definite percentage of the initial scale profit and royalties. Thus, the main source of revenue for an NFT marketplace is the commission or fee earned from each NFT sold. If you understand the functions of this platform from an NFT seller’s point of view, the marketplace includes the following things.
- Creating a user account with a linked crypto wallet for storing coins or NFTs
- Creating NFTs by uploading digital items
- Tokenization of assets
- Listing NFTs for sale
- Making transactions
- Bids placement
Options for NFT Marketplace Development
There are mainly two options for developing NFT marketplaces
1. White label NFT marketplace development
White label NFT marketplace development is about creating an NFT marketplace for selling NFTs. It doesn’t identify with their brand. From the white label NFT marketplace, customers buy ready-made NFT which they rebrand as their own.
- Time and effort saving
- Lack of special features
- Less control over product quality
2. Custom NFT marketplace Development
Custom NFT marketplace means creating a unique product as per specific requirements. It includes collaboration and close communication with the service provider. For this type of NFT marketplace, you need to make a detailed plan of features and goals of the platform for the NFT developer.
- Dynamic development process
- Unique product requirements
- Time and effort consuming
- Costly than white label
How to Develop NFT Marketplace
1. Define Your Niche
The first step in NFT marketplace development is to define what is your niche. You need to determine what types of NFTs or digital assets you will allow in your marketplace for buying and selling such as
- Digital art
- Twitter post
- Social media comment
- Trading Cards
- Big Sports Moments
- Domain Names
- Property ownership rights
- Virtual Fashion
- Comedy collections
- User-created ASMR
- NFTs related to any culture
- Luxury items
- Programmable art
You can choose as many types of NFTs as you want for your niche. While analyzing all the prospects of competitors you should think of your target audience and the asset they would like to tokenize. Whether it is digital files or physical you should choose what types of NFTs you will allow for trading.
2. Decide The Technology Stack
Choosing the technology stack for NFT marketplace development requires a good understanding of your goals and technology. Here are the main categories for that you need to choose the frameworks and technologies accordingly:
- Blockchain platforms
- Storage Platforms
- NFT Standards
- ERC 998
- ERC 1155
- Front end Frameworks
- Cloud hosting platforms
- Elastic Compute Cloud (EC2)
- InterPlanetary File Systems (IPFS)
- Database management systems
- Programming languages
- Smart contract deployment tools
- Truffle Brownie
3. Decide the Features of Your NFT Marketplace
No matter what type of NFT marketplace you are going to build, you should incorporate effective features that attract your target audience and easily engage them with your platform. These features should enable users to create, explore, list, and sell various types of digital assets or NFTs and give them a seamless experience.
- Profile registration
- Creating non-fungible tokens
- Attractive storefront
- Creating and managing asset listings
- Digital wallet
- Token search bar
- Create listings
- Bidding and auction
- Advanced tokens search
- Token listings
- Rating system
- KYC/AML verification
4. Find an NFT Marketplace Development Company
Once you have decided on the tech stack and features, it’s time to find the NFT marketplace development company which can create the platform using the listed technology. You can either recruit an in-house team to build your platform. But it will impact a lot on your budget. Therefore, you should try to hire a professional developer or dedicated NFT marketplace development company which can implement your concept efficiently.
5. Create an MVP
Start testing your platform by creating an MVP version with a minimal set of essential features to check the viability of your NFT marketplace. With this version, you can analyze how your platform works and its features respond to user inputs. This will give insights into whether your platform needs any changes. You can find potential risks or technical errors and immediately remove them to reduce the cost of the development before its final launch.
6. Test and Release
Now you are all set to release your NFT marketplace. But for you to launch the platform in the market. Make sure you conduct multiple rounds of tests to check whether all the features are working properly. Therefore, you can try releasing a demo version at first and get real-time feedback from users.
Besides this, you should plan based on user engagement metrics from the first users to timely improve or make changes to your platform in the future. Keep your marketplace up-to-date with market trends and user requirements and thus you will be able to generate great profits from your NFT marketplace.
The NFT sector is thriving significantly and creating more scope for the future. Investors are now heavily investing in NFTs and collecting valuable digital assets from different marketplaces to sell at higher prices.
This commercial trend in NFT has enabled popular NFT marketplaces OpenSea, Rarible, Super Rare to make millions of dollars. If your platform provides dynamic and unique features for creating and trading different types of NFTs, chances are you can win easily in the market.
Therefore, you should partner with a reliable NFT marketplace development company that is expertise in the NFT field. And MobileCoderz is top blockchain development company that can help you develop an advanced and feature-rich NFT marketplace that will allow you easily compete with popular platforms and other competitors and make huge revenues.
If you feel interested, let’s us discuss your idea
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