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Coinbase’s entry into the NFT industry, with 68 million verified users and 8.8 million monthly active users as of Q2 2021, could put established marketplaces like OpenSea in competition.
Coinbase, a major cryptocurrency exchange, has announced that it will open a waitlist for a nonfungible marketplace that it plans to launch later this year.
In an Oct. 12 blog post, Coinbase vice president of product and ecosystem Sanchan Saxena said the nonfungible token, or NFT, marketplace would allow its users to mint, purchase, discover, and showcase Ethereum-based tokens. According to Saxena, the offering will allow creators to keep control of their work “via decentralised contracts and metadata transparency,” with all NFTs being stored on-chain.
The Coinbase announcement follows the launch of a marketplace with users able to trade NFTs cross-chain via the Ethereum and Solana blockchains by crypto exchange FTX and its US-based subsidiary. Binance, the world’s largest cryptocurrency exchange, entered the NFT market in June by launching its own marketplace with the goal of lowering transaction costs.
With 68 million verified users and 8.8 million monthly active users as of Q2 2021, Coinbase’s entry to the NFT industry could provide competition for established marketplaces like OpenSea and Rarible.Nate Chastain, OpenSea’s head of product, is under fire for using burner wallets to purchase NFTs on the platform so that the artwork could receive more attention on the website’s front page. The platform primarily makes use of Ethereum, which dominates the NFT market in terms of sales.
According to DappRadar data, the total transaction volume on OpenSea at the time of publication was $8.7 billion, making it the largest NFT marketplace. NFT sales via the Pokemon-themed Axie Infinity game came in second at $2.5 billion.