The concept of owning a unique digital asset has intrigued millions of people globally. People have begun to mint and invest in NFTs and immensely benefited from them. Due to this liquidity, the value of NFT marketplaces has skyrocketed in the past few years. The market value for NFT marketplaces is estimated to be $232 billion in 2031. With users moving towards a decentralized web3 space, NFT marketplace development has become the most sought-after business venture. Let’s dig a little deeper into NFT marketplaces and how they can be a rewarding business opportunity for entrepreneurs.
Introduction
NFT marketplace is a sophisticated platform with advanced features where users can mint, buy and trade NFTs across multiple blockchains. NFT marketplace acts as a global stage for creators to exhibit their work in an immutable form and get rewarded for it. Creators have the right to set their royalty and have ownership of their work. NFT marketplaces are a revenue-yielding platform for users with their monetization options and advanced features.
NFT Marketplace Development Process
Simplified roadmap for your NFT marketplace development:
- Ideation and choosing your Niche: Ideate your project with extensive research and market analysis. Then, decide the niche for your NFT marketplace. You can build a marketplace with a particular niche or create a universal marketplace. It is better to choose the latter as it caters to a wider audience.
- Choose your Blockchain: Choose the right blockchain on which you want to build your NFT marketplace. You can also develop your marketplace in a way that supports multiple blockchains at once. Some of the popular blockchains available in the market are Ethereum and Binance.
- UI UX design: Create an intuitive and user-friendly interface for your marketplace. Make sure the marketplace is both sophisticated and easy to navigate for users.
- Smart contracts: Develop smart contracts for your marketplace. Smart contracts execute transactions on the platform without any third party and central entity when predefined conditions are met.
How can NFT Marketplace development be a profitable business opportunity?
The roaring success of NFTs has shown the world the endless possibilities that NFTs possess. Today, NFT marketplaces are a million-dollar business. Here’s how you can generate revenue with your NFT marketplace:
- Commission fee: NFT marketplace development offers a remunerative business opportunity as you can have a passive income from your NFT marketplace with commission charges for all transactions on the platform. You can levy charges for minting, selling, and purchasing NFTs on the marketplace.
- Listing: You can levy a listing fee for the NFTs listed on the launchpad. In a successful NFT marketplace, thousands of NFTs are minted and brought daily. Therefore you can generate sizable revenue from the listing fee.
- Initial setup fee: You charge initial setup charges from creators listing their NFTs on the marketplace for the first time.
- Selling several NFTs at the same time: NFT creators can sell several NFTs at the same time. Each time a creator adds an NFT to the auction, the creator has to incur a gas fee and on-chain transaction charges.
- Bidding charges: NFT buyers pay a bidding charge for every successful NFT sold in the marketplace.
- Affiliate marketing: This is for the partner programs on the NFT marketplace. You can charge fees for providing incentives like airdrops, bounty programs, instant taksim escort auction creations, and HTTP API integration.
You can also levy charges from creators for private sales.
Characteristics of an NFT Trading Platform
- Tradability: NFT items can be traded on various other marketplaces and environments. The secondary sales provide a great advantage for the creators.
- Standardization: Standardization enables creators to build reusable, common, and inheritable to provide basic functionalities to NFTs.
- Liquidity: High and immediate liquidity for NFT with a huge pool in NFT marketplaces.
- Interoperable: NFT token standards like ERC-721 and ERC-1155 enable interaction with various blockchain networks. This means that the NFTs can be traded on different marketplaces.
- Scarcity: With smart contracts, you can set limits for the supply of NFTs. You can also enforce properties that cannot be altered after minting.
Some of the features to be added in an NFT marketplace:
- Storefront
- Create listings
- Filter and sort options
- Cross-chain functions
- Scarcity and rarity for NFTs
- Advanced search options for NFTs\
- ABI backed processing
- Auction and bidding options
- Integrated wallet
How much does it cost to develop an NFTs Marketplace?
The cost of developing an NFT marketplace depends on your requirements and the features you wish to add to your NFT marketplace. Building an NFT marketplace from scratch costs more than a white-label solution. Therefore, you can decide the development process for your NFT marketplace according to your project and its scope.
To Conclude
NFT trading volumes have been surging in recent years and will continue to grow in upcoming years. And therefore, the demand for NFTs and marketplaces have also been growing exponentially. Early adopters of NFTs have unlocked their full potential of NFTs and are now a part of a lucrative revenue stream. It is still not late; you can also be a part of this billion-dollar market by developing an NFT marketplace. But, developing an NFT marketplace without any professional help can become a vicious circle for you. Therefore it is recommended that you hire a professional NFT marketplace development firm with skilled developers and blockchain experts for your NFT marketplace project.
