Overview of the top NFT trading markets

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OpenSea

It is one of the leaders in the NFT market, with over 2 million collectibles and over 20 billion transactions (over 7 billion in 2022 alone).

OpenSea divides its collections into several categories: art (everything from profile pictures of social media accounts to abstract works), domain names (names like handsome. ETH , which can be linked to blockchain addresses), and music.

OpenSea is now deployed on Ethereum, Polygon, Klaytn and Solana blockchains and supports cryptocurrency payments and credit card purchases.

Advantage

The main selling point of OpenSea is that it is the first and largest NFT marketplace, so it relies on the number of users to incentivize NFT listings. The idea is that the best way to market a new series is to make it visible on the platform with the largest audience.

So if most collectibles are working hard to become verified collectibles on OpenSea, it's natural for collectors to pay attention to new collectibles that come online.

In line with this strategy, Opensea is attempting to cement its position as the largest exchange marketplace by migrating to the Solana chain, which is home to the second largest NFT community in cryptocurrency. opensea like nft marketplace

disadvantage

A big problem with OpenSea is the cost of interacting with its smart contracts. For a long time, it was one of the largest consumers of ETH gas fees.

This lures users with better overall trading terms for competitors and triggered an update to their protocol, called Seaport. Released in June 2022, this new set of smart contracts consumes 38% less gas than the previous version, making it cheaper to place orders and buy.

X2Y2

X2Y2 is an NFT trading marketplace on the Ethereum blockchain. Launched in early 2022, its motto is to be a platform for users, for users. It is a leader in transaction volume, and its success is due in part to its rewards program, which gives users a share of the native token X2Y2.

Since its launch, it has rewarded users for buying and selling NFTs. It transfers transaction fees to holders who decide to stake platform tokens on the platform. Note that this also creates problems with wash trading (explained below).

X2Y2 is also one of the most versatile platforms overall.

Advantage

X2Y2 focuses on the shopping experience of users, buyers, and provides them with different additional purchase options, such as setting optional royalty values. This feature enables buyers to decide whether to pay royalties to the creator of a collectible, potentially purchasing the item at a cheaper price. X2Y2 aggressively markets its fees as the lowest in the market, even running a 0% transaction fee campaign.

disadvantage

X2Y2 has significant wash trading volume due to rewards for trading on the platform, with users flipping NFTs back and forth between accounts and farm incentives. This means that many transactions are not real, making it difficult for beginners to assess the market value and demand for certain NFT collections.

Nor has X2Y2 shown any initiative to overtake Ethereum, replicating its model in a less crowded environment.

Looks Rare

LooksRare launched in early 2022 as the community's first NFT marketplace and actively rewards traders, collectors and creators for their participation. With this in mind, it launched a "7-day window airdrop " of LOOK tokens to eligible OpenSea users to attract them to trade on this new platform.

It implements a rewards program where users who buy or sell NFTs on LooksRare earn LOOKS tokens. Transaction fees (2% of sales) from the platform are then earned by LOOKS stakers. Additionally, creators also receive their royalties when sales are made.

The developers of LooksRare do not rely on previous material (e.g. from Opensea) to write their smart contracts. As such, they can be customized using a modular system to introduce new features over time.

Advantage

Some of the now-standard features of the NFT marketplace debuted on LooksRare.
Collectible Offers: Make offers covering all NFTs in the selected collection
Trait Offer: Buy any NFT in the collection that has a specific trait
Multiple Cancellation: Cancel multiple open orders in one transaction


And continue to have dedicated unique features, such as conditional pending orders , users can list two NFTs, and if one of them is sold, the other will be automatically removed from the market and cannot be purchased.

disadvantage

LooksRare could not gain more popularity after distributing LOOKS tokens to former OpenSea users during the initial launch phase. It remains solely focused on the Ethereum blockchain, offering a niche approach for more sophisticated traders. Like X2Y2, LooksRare is also facing wash trading issues, hopefully not a problem for the platform itself (since it charges transaction fees), but it makes users suspicious of liquidity and floor price data.

Magic Eden

Launched in September 2021, Magic Eden quickly became the leading NFT marketplace on Solana.

Since its dominance on Solana, Magic Eden has also begun to expand to Ethereum. Currently, users can mint collectibles on their launchpad and pay with ETH even when the collectibles are deployed on Solana. It also started enabling minting on Ethereum.

The missing piece for cross-chain functionality is for Solana users to buy ETH NFTs paid with SOL. This will unlock the possibility for the Magic Eden community to purchase these NFTs natively from the Solana blockchain.

Advantage

Magic Eden has several very unique features. This includes launchpad that allows users to create NFTs in minutes without requiring extensive NFT knowledge or development experience. The marketplace also helps market featured projects on its launchpad.

Another unique feature that can only be found on Magic Eden is whitelist management. Magic Eden supports the upcoming curated list and provides software management for its whitelisting process.

disadvantage

Magic Eden is the dominant platform on Solana (accounting for over 80% of on-chain NFT transactions) and doesn't have any real competition yet. However, Magic Eden lacks a user experience that really differentiates it from other platforms on Ethereum.

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