On-Chain Data suggests that crypto exchange traders may not be so keen on NFTs – NFTgators

On-Chain Data suggests that crypto exchange traders may not be so keen on NFTs – NFTgators

Quick take:

  • Cryptocurrency exchange-based NFT marketplaces post extremely low volumes.
  • It doesn’t look like they can replicate their success in crypto trading in the NFTs space.
  • Coinbase NFT has averaged a daily transaction volume of approximately 1 ETH over the past five days.

Cryptocurrency exchange platforms are struggling to replicate the success of crypto trading services in their NFT marketplaces. For example, Coinbase’s non-fungible token (NFT) marketplace has recorded just over 15,000 users and around 4,280 ETH in transaction volume over time.

An NFT is a blockchain-based digital file that represents proof of ownership of a digital collectible, artwork, virtual goods, music track, or video clip. NFTs became one of the most exciting segments of the crypto industry during the pandemic with artists and celebrities joining the crusade in search of alternative income streams.

Since then, leading crypto exchange platforms including Coinbase, Binance, FTX, Crypto.com and ByBit have all launched their own NFT marketplaces to expand their offerings.

However, only a few of these platforms have made on-chain data related to NFT transactions available to leading analytics platforms.

According to a dashboard compiled by CryptusChrist at Dune Analytics, Coinbase NFT has averaged around 1 ETH in transaction volume over the past five days. Since its launch in March 2022, the platform has collected a total volume of around 4280 ETH ~$6.8 million.

Source: Cryptuschrist/Dune Analytics

The platform now has around 15,300 NFT traders, a significantly small number compared to the crypto exchange platform’s 108 million registered users.

Last November, Coinbase revealed that it has received more than 2.5 million emails seeking to sign up for its upcoming NFT marketplace. Coinbase CEO Brian Armstrong went on to suggest that the company’s new NFT marketplace could be bigger than its cryptocurrency business.

See also  Tencent closes the NFT platform as the government's policy makes it impossible to thrive

But judging by the numbers compiled by CryptusCrust on Dune Analytics, it appears that only a small number intended to become active NFT traders on the platform.

Coinbase’s biggest rival, Binance, has seen better success with its NFT platform. According to a Dune Analytics dashboard created by BrownBoy BNB Chain, NFT recorded a transaction volume of $460,000 on November 6th.

Source: Brownboy/Dune Analytics

The BNB Chain NFT marketplace seems to be outperforming Coinbase, recording a transaction volume of more than $4 million on November 1st, managing to top the $1 million mark for the next three days before falling over the weekend.

But data on BNB Chain NFT is still sparse with no statistics on the number of users and lifetime sales.

Keep yourself updated:

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