Three months later, Coinbase NFT has been a disaster

Coinbase has one product that gives even worse results than the slow stock: the NFT marketplace.

Coinbase NFT Flops

Three months later, Coinbase’s NFT platform turns out to be a complete failure.

The largest US-based cryptocurrency exchange and one of the industry’s oldest centralized marketplaces seems to have failed to launch its social marketplace for non-fungible tokens, Coinbase NFT.

According to open source provider of crypto data DuneCoinbase NFT has recorded just around $ 2.9 million in trading volume since its launch on April 20, setting its average daily volume at around $ 37,000. To put it in perspective, the largest NFT marketplace in space, Open seahas seen over $ 5.9 billion in trading volume in the same period. Looks Rare, which was launched shortly after the NFT market peaked in January, has recorded about $ 2.53 billion in trading volume. Over the last 24 hours, Coinbase NFT has recorded only 6.1 ETH, or around $ 7,200, in trading volume.

While the exact causes of Coinbase’s apparent failure are difficult to determine, arriving months late for the NFT bull cycle (and four months after it planned to launch), the spotlight is on dubious NFT projects such as MekaVerse (a once hyped collection). that was accused with rigging down and finally refueled), and it certainly did not help to block the launch of the platform.

Coinbase launched its NFT marketplace in hopes of attracting the masses and differentiating itself from the competition by designing itself as the “Web3 social marketplace for NFTs.” However, it seems that the product came too late for everyone to care. When Oslo Børs released the product’s beta version in April – at least four months later than promised – the NFT market was already well on its way down to reaching the same trading volume it had before the bull run in NFTs even started.

The best month so far for NFTs was January, when the total monthly trading volume topped around $ 17.1 billion. This is more than the total trading volume registered since Coinbase NFT was launched. While interest in NFTs was declining, Coinbase decided to release the platform to a limited number of waiting list users at launch, which was likely to hurt the adoption prospects in the process. Before launch, the platform had around four million users waiting in line to try it out, while today – three months later – it has registered only around 8,668 users in total.

Despite launching five full years before the now largest cryptocurrency exchange in the world, Binance, and seven years before its rapidly emerging competitor, FTX, Coinbase has begun to lose its industry relevance and market share over time. While the stock exchange was listed on the Nasdaq in April 2021 in what was described as a “watershed moment” for the crypto industry, the stock has since fallen amid a shaky macroeconomic environment, trading about 84% of its highest at $ 51.71. The erroneous launch of the NFT marketplace “for social engagement” only contributes to the downfall, and puts the company back millions of dollars with hardly anything to show for it.

Disclosure: At the time of writing, the author of this article owned ETH and several other cryptocurrencies.