Coinbase Market NFT Anti Climax

The most hyped market finds it difficult to gain momentum The highly anticipated Coinbase NFT market has had a dismal first month of trading, in part due to launching during a recession and struggling to gain traction. The Coinbase NFT market has processed just 5,446 transactions and just over $1 million in sales since April…

The most hyped market finds it difficult to gain momentum

The highly anticipated Coinbase NFT market has had a dismal first month of trading, in part due to launching during a recession and struggling to gain traction. The Coinbase NFT market has processed just 5,446 transactions and just over $1 million in sales since April 20. During the same period, the leading NFT marketplace, OpenSea, amassed more than 4 million transactions and more than $4.6 billion in sales volume.

The launch of an NFT marketplace by leading centralized exchange Coinbase was expected to bring NFTs closer to some of the 98 million verified accounts and further drive adoption. Especially since more than 2 million people signed up for the waiting list. However, as some point to an economic downturn and falling crypto prices to explain the anticlimax, it is essential to look at how other NFT markets perform.

Don’t blame bitcoin

The data points to a situation where NFT trading and sales are still very active, only the Coinbase NFT Marketplace is not seeing much action. OpenSea has been dominant in the secondary NFT market and has not released its vice despite serious attempts by LooksRare and other pretenders to evict them.

OpenSea amassed over $4.6 billion in NFT sales volume from over 4 million transactions and nearly half a million users since April 20. LooksRare has remained competitive despite changes to its LOOKS token rewards, processing over $2 billion in sales volume from far fewer transactions. In particular, much of the activity on LooksRare involves bad actors selling NFTs back and forth for LOOKS tokens. Hence the lower number of transactions, but still generating $2 billion, or half of OpenSea’s sales volume in the same time.

OpenSea was boosted by the Bored Ape Yacht Club Otherside NFT land sale, which took place in late April. Significant spikes can be seen around May when NFT parcels of land began trading on the OpenSea NFT market.

There’s no need to panic

Despite a slow start, transactions and sales on the Coinbase NFT market are beginning to pick up momentum, with May being the busiest month. The market processed 2,465 of its 5,566 total NFT sales over the last seven days, showing increased appetite for Coinbase NFTs as indicated prices in ETH began to fall in line with token values ​​on 5th June. May.

Looking at what NFTs are being sold on the Coinbase NFT market reveals that NFTs are mostly coming from what are now considered top-tier collections. This again supports the idea that more educated buyers are buying the best NFTs now due to the drop in ETH price and the ability to get a discount. Doodles have generated over 136 ETH, or around $275,000. Tiny Cats and RTFKT also top the list, while Otherside land and VeeFriends Series 2 have fewer sales.

uneducated audience

Interestingly, the Coinbase marketplace hosts showcase pages for OpenSea, Rarible, and Known Origin. These act as a portal for customers to purchase NFTs from these alternative platforms without leaving the Coinbase marketplace. Together, these Rarible pages host almost 200,000 NFTs, while the OpenSea page exceeds 1.5 million. The Coinbase NFT marketplace is funneling a lot of traffic and sales volume to its competitors.

Another interesting observation is that on the Rarible page shown at the top of the list above, accumulating 1487 sales and generating more than 21 ETH, we see some suspicious NFT elements. To the trained eye, these items are replicas or counterfeits of original NFTs. They represent first level collections like BAYC or MAYC. However, the main giveaway is the price. According to this page, I can get a Bored Ape x Louis Vuitton NFT for $15. These sales are arguably the reason behind such inflated numbers seen through the Rarible contract and could be spurred on by uneducated buyers with weaker hands using the Coinbase market.

Coinbase Whales

It’s early days for the Coinbase NFT market, but already some prolific wallet addresses stand out. With 109 sales, we see CheeryBen at the top of the list.

A further dive into the wallet using the DappRadar Portfolio Tracker shows that the wallet contains 267 NFTs worth around $11,000. However, the wallet is packed with what looks like a well-selected collection of scam and copycat NFTs with low individual values.

On first inspection, you might think that this person bought a lot of fake NFTs from the aforementioned Rarible collection. While it is possible, it is a fact that they are trying to change them to 100x the value on their page which is setting off alarm bells. Looking at the trading history of Nounbird #3106, it appears that this person is trying to trick other unsuspecting people into buying a fake priced at 138 ETH, or around $275,000.

This could be happening in a market like Coinbase, where it is arguably much less user aware than those using decentralized platforms like OpenSea. More concerning is that someone could pay 138 ETH for a copycat NFT, which will undoubtedly bring a lot of negative press to the Coinbase market and NFTs in general as a side effect.

Dead NFTs? do not be silly

While some will blame the markets for Coinbase’s disappointing performance last month, we at DappRadar see a different picture emerging for NFTs amid a bear market scenario. At the end of April, we noted that the NFT markets recovered after a six-week recovery period with a monthly transaction volume of $6.3 billion; Moonbirds were a big driver with $500 million generated in trading immediately. Interestingly, we saw NFT trading volume on Solana grow 90% since March, reaching $295 million, mainly driven by Okay Bears and DeGods. On top of all this, Yuga Labs’ Otherside landfall roiled the crypto market with $340M in APEs from the mint and $420M in secondary trades.

Coinbase remains the largest cryptocurrency exchange in the US and arguably saw its chance to get a piece of an NFT market now worth billions of dollars. After a rather abrupt entry into the world of NFT markets, the Coinbase NFT market now has a serious job of engaging its audience and educating them about NFT ownership and its dangers.

The foregoing does not constitute investment advice. The information provided here is purely for informational purposes only. Please exercise due diligence and investigate. The writer holds positions in various cryptocurrencies including BTC, ETH, and RADAR.

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