How did NFT Marketplace get an entry into the market? In the past couple of years the outbreak of COVID-19, followed by the lockdown, forced museums and galleries to close. As a result, the sales of physical art dropped significantly. So, different artists took up NFTs to portray their artwork.
Since, the adaption of digital art aka NFTs, the popularity of online NFT marketplaces for digital collectibles is increasing day by day. Popular artists, celebrities, and giant companies are coming up with their NFTs and Marketplaces.
In general, the purpose of an NFT Marketplace is to allow the trading of NFTs. The NFT Marketplace functions as a Blockchain platform. Although, this platform is new and is not completely mature. But, because of its recent buzz and demands, developers and businesses are looking to grab a piece of the pie by creating their own Marketplace.
If you are looking to compete with the biggest NFT marketplaces you have to create your own NFT Marketplace.
Before we get into details of How to create an NFT Marketplace, let’s understand what NFT Marketplace is.
NFT Marketplace Explained
In general, an NFT Marketplace is a trading platform for Different Digital Artwork. On an NFT Marketplace, you can easily hold and trade NFT Tokens.
In addition, you can also buy or auction these tokens. However, to make transactions and hold your NFT tokens you must have a crypto wallet. The wallet will allow you to smoothly access different marketplaces.
Further, it facilitates its users to not only trade but also create them.
How does an NFT Marketplace Works?
As mentioned earlier, to access any marketplace you will require a digital wallet. You can use it for creating NFTs and selling them. Once you sign up for your wallet you need to follow a few steps:
- Step 1: Create an NFT and define all suitable parameters
- Step 2: List your NFTs for sale and wait for the completion of moderation
- Step 3: Let buyers put their bids when you put up an auction
- Step 4: Once the auction is complete, the marketplace will transfer the cryptocurrencies.
What makes an NFT popular and which marketplace is most popular?
The “Non-Fungible” concept, distinctiveness, and ownership are making NFTs popular. Further, an individual can use NFTs for displaying them in formats such as JPEGs, GIFs, MP3, Videos, and more.
Most Popular NFT Marketplace
OpenSea is the most popular NFT Marketplace. OpenSea NFT Marketplace allows the users to sell and buy both NFTs and Cryptos.
Here are some statistical data to justify the popularity of the OpenSea NFT marketplace:
As OpenSea is the platform with the most active users. The contribution to the NFT Market is also noticeable. A few months back the evaluation of OpenSea hit 13.3 Billion.
The current estimates of the NFT Market suggest that it will grow from $14.02 billion in 2021 to $21.33 billion in 2022 at a compound annual growth rate (CAGR) of 52.1%. The market is predicted to reach $82.43 billion in 2026 at a CAGR of 40.2%.
Now, it’s important to understand that you will have to include some basic or let’s say mandatory features in your NFT Marketplace.
Must include features in an NFT Marketplace
Feature #1 Storefront
This feature is nothing but your NFT Marketplace dashboard. It displays and provides users with all the data regarding an asset:
- Value history
Feature #2 Search Items
NFT enthusiasts should easily have complete information on different items. Hence, a search option will provide all the data regarding your products that feature on your marketplace. This will surely increase user engagement.
Feature #3 Filters
Filters feature is very important while developing a marketplace for NFTs. They allow users to select assets by category, listing status, payment method, and due time. In fact, if your marketplace is focusing on collectibles then it is a must-add feature.
Feature #4 Listings
Listing assists the users with the knowledge to choose NFTs for buying and selling. It will also allow your customers to create and send digital collectibles. Make sure that customers can easily navigate. Further, create a page where users can submit files, and also sort, filter, and search for a particular NFT.
Feature #5 Place Bid and Buy
Your marketplace must allow different users to buy and provide NFTs that exist on the platform. Their offers should include a bid validity date and also allow them to see information on those specific offers’ current status.
Feature #6 Wallet
Without a wallet user, ’s won’t have the ability to trade, store or buy NFTs. Hence, make sure that you provide the Wallet feature. It is not necessary to create a new one. You can easily integrate some existing wallets like Coinbase, Binance, and MyEtherWallet into your Marketplace.
Feature #7 Listing Status
Including Listing status is beneficial for users who provide products and pass the product authentication process. It authorizes checking the position of the confirmation process. It helps carry out collectible verification.
Feature #8 Ratings
In general, this feature is for newbies who don’t know where to start. Hence, checking someone else’s rating helps them to understand if a particular seller is trustworthy or not.
Further, it also helps them to select products quickly, and see how the system functions. On an NFT marketplace, different participants can rate others and provide feedback depending on their experience. It also permits others to check the credibility of a user.
Along with features, there are certain factors one should consider while NFT Marketplace Development.
Factors to consider while Building an NFT Marketplace
Transparency factor must have utmost priority while creating an NFT Marketplace. It provides users clarity in terms of transactions. The Blockchain Network makes certain that it provides a seamless and error-free payment procedure.
This is a powerful factor. The in-built security offers traders protection from transaction loss or other unnecessary functions.
Decentralization makes it easy to copy and distribute information to different blockchain networks. So, when there is a new block, the network updates its Blockchain for making changes.
#4 Monetization model
If you consider this factor while developing your marketplace, you can obtain a certain percentage of what the asset is worth after the NFT Sales or Transaction. Like OpenSea doesn’t charge fees for listing but deducts 2.5% from the product cost.
#5 Smart Contracts
Smart contracts are one of the influential components of a marketplace for NFTs. The functioning capacities of marketplaces rely on smart contracts. No commission fee is needed for initializing a smart contract. You can achieve this by simply signing the contract online.
After covering Factors and features let’s see how you can build your NFT Marketplace.
How to create an NFT Marketplace?
Step 1: Select your Niche
Selecting a proper niche helps you kick start your NFT Marketplace Development. Discuss your idea with developers and make strategies to establish a timeframe. Once you layout the timeframe, the development team can focus on outlining the features and aspects your Marketplace would have.
Step 2: UI/UX Design
UI/UX design is important for your Marketplace. It will lure customers if it is straightforward and intuitive. A good UI/UX design will also guarantee customer satisfaction.
Step 3: Smart Contract Integration
The data authentication on the Marketplace will take place on a Blockchain. Smart Contract provides a proper verification while carrying out transactions on the Marketplace.
Step 4: Front-End and Back-End Development
There is no distinction in which framework you can utilize to create an NFT marketplace. The following are three of the most prevalent frameworks for an NFT platform:
The front end is the part where software and users interact. It creates and dispatches user requests to the server. The primary goal is to provide marketplace customers with an enjoyable experience. Hence, NFT developers must pick the most suitable technologies for each project.
The back end has a vast range of choices similar to the front end. NFT development involves the following back end technologies:
Step 5: Testing
In this step, your developed Marketplace goes through different testing phases. The ultimate aim of testing your NFT Marketplace is to simply identify errors and solve them.
Step 6: Deployment
Post-Testing you have to choose services for deployment. In general, NFT Projects are deployed on AWS at Erbis because their services offer the best price-to-quality ratio. But, you can choose any other services that are suitable for your marketplace and within your budget.
Cost for NFT Marketplace Development
The Market of NFTs and Cryptocurrencies are new and with the usage of blockchain technology and other emerging technologies, the Marketplace development can cost you around $80,000. This is not a generalized figure the cost may be higher. It is subjective and changes accordingly.
So, if you are looking for an estimate or ready to build an NFT Marketplace of your own, contact-us. Our team at Webbybutter will guide you through the process.
NFTs are here to stay! So building your NFT Marketplace website or app is a good idea. This marketplace will help in consolidating your business ambitions.
How exactly does NFT Marketplace make money?
NFT Marketplace makes money by charging fees for every transaction. Whenever a user buys or sells they receive a commission.
How much time will it take to create an NFT Marketplace?
There is no way to determine the exact time but considering different factors such as level of complexity, features, platforms, technology stack, and so on. So, if we sketch a time period then it may take around 4-6 months to develop an NFT Marketplace.