This past year, it seems like the whole world has been buzzing about NFTs and the exciting new metaverse. As a result, people have been flocking online to buy NFTs, creating a booming new market that seems to just keep growing.
And 2022 looks like it’ll be more of the same – NFTs are here to stay! That means that more and more NFT marketplaces have been popping up. So to help you get acquainted a little better with the NFT space, we’re going to discuss what an NFT marketplace is and what are the top marketplaces to look out for in the upcoming year.
A Quick Review of NFTs
NFT stands for non-fungible token. That phrase may mean nothing to you, so let’s break it down further: “non-fungible” simply means that it’s one-of-a-kind and “token” means that there’s a digital record of the item online. In other words, an NFT is a digital certificate of authenticity that proves a given item is 100% unique and authentic.
This digital record of an NFT’s uniqueness and authenticity is stored on something called the blockchain. This is a digital ledger or record of transactions that is duplicated and distributed across an entire network of computer systems, known individually as nodes. In other words, it’s decentralized and the information is spread across the entire internet via a network of interconnected nodes.
NFTs derive their value from their scarcity, uniqueness, and authenticity. Think of it like this: the original Mona Lisa painting is infinitely more valuable than a print or reproduction. This is why NFTs are also referred to as digital assets or crypto assets, and consumers are buying, selling, or collecting them accordingly. In fact, you may have heard news stories about NFT sales for huge sums of money.
If you want a more comprehensive description of NFTs, then make sure you check out our blog post Where Do I Buy Music NFTs? In it, we talk about more than just music NFTs – we give a detailed description of NFTs, outline their unique properties, and explain how the blockchain works.
What Is An NFT Marketplace?
It’s pretty simple: an NFT marketplace is simply a website or app where you can buy and sell various kinds of NFTs. They’re basically Amazon or eBay for these digital assets.
The NFT marketplace will be hosted on a specific blockchain. As a result, they use a specific form of cryptocurrency, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), and Binance Coin (BNB). Currently, Ethereum is the most popular cryptocurrency for NFT marketplaces, although there are quite a few that are located on the Binance blockchain as well.
In 2021, there was a massive proliferation of various NFT marketplaces to keep up with the exploding demand for NFTs. In fact, in the Q3 of 2021, NFT sales surged to a mind-boggling $10.7 billion! It’s a booming market, and people are flocking to various NFT marketplaces in order to take advantage of this crypto frenzy.
Consumers are so hyped about NFT marketplaces because it allows them to buy the types of NFTs that they want from the creators that they admire. It gives them the ability to connect with their favorite artists on a deeper and more immersive level, effectively creating a gateway to the growing metaverse.
However, you may be asking yourself: What exactly is “the metaverse”? Broadly speaking, it’s a kind of virtual reality or augmented reality online where people can move, interact, and exist in persistent 3-D virtual environments. Basically, it’s the next version of the internet, just more immersive.
This is where NFTs come into play! You can buy NFT collectibles that you can then trade or barter with other users within the metaverse, creating a kind of secondary digital economy. In fact, the collectability of NFTs is a huge part of their appeal and a major source of their burgeoning value.
As you can see, this is the new frontier for online interaction, and NFT marketplaces are how fans can get their hands on the most exciting NFTs that musicians, artists, and creators offer.
Are There Music NFT Marketplaces?
Yes, definitely! There are NFT marketplaces that are focused on music and connecting you with your favorite musicians in the metaverse. In fact, if you want to learn more, make sure you check out our blog post What Are Music NFTs? It’s got everything you need to know!
These music NFTs can include:
- Digital artwork
- Concert tickets
- Digital merchandise
- Meet & greets
- Collaboration opportunities
- Collectibles for the music metaverse
While many people are aware of music NFTs like songs and albums, the most exciting new frontier for music NFT marketplaces are the more personalized “experiences” that people can buy. These foster a sense of community in the rapidly expanding metaverse and they’re a perfect way to connect deeply with the musicians and creators that fans love!
For instance, you could buy tickets to see concerts in the virtual space from your favorite artists, creating unique and one-of-a-kind experiences that would be a dream come true for any super fan. Or you could buy collectibles from your favorite artists that enrich your fandom and deepen your connection to their music and persona.
On these music NFT marketplaces, fans will participate in auctions for these tokens, and the winning bidder will receive the NFT in their digital wallets via an ultra-secure and encrypted transaction.
The HUSL is a new, dynamic, and vibrant music NFT marketplace on the Ethereum blockchain that offers all these different kinds of music NFTs. You can make your way through the exciting new metaverse while connecting with the musicians that you know and love!
How Do I Choose The Right NFT Marketplace?
Since the popularity of NFTs is exploding right now, there are a ton of NFT marketplaces that are opening up.
That being said, there are a few things to look out for when choosing the right NFT marketplace for you:
- Type of cryptocurrency. The cryptoverse is so new and dynamic that there are multiple kinds of cryptocurrency available. However, as we mentioned above, Ethereum (ETH) and Binance Coin (BNB) are still the two most popular cryptocurrencies for NFT marketplaces.
- Creators. This may seem obvious, but you should choose an NFT marketplace with creators whom you’re interested in and who are offering the types of NFTs that you find interesting or appealing. You might also want to choose a marketplace that offers unique experiences or personal opportunities.
- Type of NFTs. Creators are offering NFTs for just about everything, from video clips to pieces of artwork to tweets. As a result, some marketplaces specialize in certain kinds of NFTs while others are more broad in their selection.
- Transaction fees. Some NFT marketplaces have transaction fees, also known as gas fees. If you’re planning on doing a lot of buying and selling, then you might want to choose a gas-free marketplace or one that has lower transaction fees.
The NFT space is new and exciting, so its growth is absolutely unprecedented. This means that collectors, fans, or investors have a wealth of options to choose from!
What Is The Best NFT Marketplace?
There are so many kinds of NFTs, including music, art, video game items, collectibles, trading cards, memes, sports highlights, virtual fashion, and even digital real estate.
If you’re a collector, fan, or investor, then you’ll have to choose an NFT marketplace based on what you want to buy, sell, or collect. That being said, let’s take a look at some of the marketplaces that will likely dominate the NFT market in 2022, including both more established options and exciting new prospects.
Video Game NFT Marketplaces
NFTs exist in online video games too! This usually consists of collectable items that you can then use in the video game metaverse. If you want, you can sell these to other players or build up a collection that can then appreciate in value. In some cases, these can also be called in-game assets.
There are a handful of NFT Marketplaces that are devoted to the video game space, so let’s take a look at the top options.
Binance is a well-known and highly respected NFT marketplace that specializes in two types of NFTs: video games and mystery boxes. Unlike a lot of other marketplaces, this one is located on the Binance blockchain, meaning that it takes Binance coin. So, if you want to get on the Binance marketplace and buy or sell NFTs, then you’ll have to choose a crypto wallet that supports this cryptocurrency.
As far as video game NFTs, Binance is best known for having an amazing selection of IGOs, otherwise known as Initial Game Offerings. These are simply NFT assets that come from top-tier gaming projects and are available exclusively on the Binance marketplace. Think of them like exclusive in-game items that can enrich your gaming experience by making it more immersive or expand your place in the video game metaverse.
These IGOs can launch one of several ways: auction, fixed price, or mystery boxes. The first two are pretty self-explanatory. However, with mystery boxes, there’s obviously an element of chance, but for some fans and collectors that’s part of the fun!
Finally, IGOs are purely for gaming and usually consist of in-game assets like early-access passes, weapons, skins, or other in-game items. These are all exclusive to the Binance marketplace! For gamers, these are highly prized digital assets that can be collected, sold, or traded.
This is the NFT marketplace for Axie Infinity, an NFT-based video game that’s been exploding in popularity in 2021. It’s a Pokemon-inspired universe where players use characters called Axies in various games. Essentially, it’s like having little cute digital pets, meaning that it has broad appeal with kids, teenagers, and adults alike.
It’s actually the second largest NFT marketplace, with a total trading volume of over $2 billion in 2021. Plus, it doesn’t look like it’s popularity is going to decrease anytime soon and 2022 will probably be an even bigger year.
A lot of players are using Axie Infinity’s in-game breeding mechanics to make new and unique Axies, which they then list on the marketplace and sell for huge sums of money. In fact, it can be so profitable that some players are actually making whole careers out of this, turning them into kind of “digital breeders” for the cute collectibles.
Interestingly, these Axies are different from regular art NFTs, which are usually collected for the sake of building a collection or because the user simply likes the artwork. Instead, the Axie NFTs are used to fight in-game monsters or other players, earning the player valuable tokens that are then used in the breeding process. This means that they have actual value within the video game world!
On the downside, there’s quite a bit that you have to do before you can even get started on the Axie NFT marketplace – it’s not the most user-friendly setup for newbies. Much like The HUSL, you’ll need an Ethereum wallet like MetaMask, but you also need a Ronin wallet to get started. Then you have to convert the Ethereum to Ronin and purchase at least three (3) Axis on the marketplace.
Digital Art NFT Marketplaces
Digital art NFTs are also huge right now. It makes sense, since a lot of the value in fine art is based on the scarcity and uniqueness of the piece in question.
As a result, there are some digital art NFTs that have become incredibly sought after and profitable. That being said, let’s take a look at some NFT marketplaces for digital art.
Founded in 2018, this is one of the best known NFT marketplaces for digital art. This is not a young upstart that’s just arrived on the scene – it’s a well-established marketplace that commands a lot of respect in the digital art NFT market.
Essentially, Nifty Gateway is a centralized marketplace for digital art NFTs. However, it’s highly unique for a few reasons. First of all, the art NFTs are known as nifties on this marketplace, hence the name “Nifty Gateway”.
Second of all, you do not need to use cryptocurrency like Ethereum (ETH) to buy or collect any of the nifties. Instead, you can make all your purchases with regular US dollars. This is because the cryptocurrency exchange Gemini actually owns this particular marketplace.
Additionally, Nifty Gateway works with top artists to create collections of valuable nifties that are then released via drops. These collections are only available for limited amounts of time, further driving up the value and scarcity of the nifties on sale. Thankfully, the user interface is super easy to navigate and there’s a constant timer showing when the next collection will drop.
Larva Labs isn’t exactly an NFT marketplace – it’s rather a digital home for two creative technologists known informally as Matt and John. Under this general banner, they have several NFT marketplaces that offer all kinds of quirky and unique digital art NFTs, some of which have become the most valuable digital assets on the current NFT market.
These marketplaces include:
- CryptoPunks. These are unique, collectible tokens that live on the Ethereum blockchain. They’re consistently some of the most valuable NFTs available today, and the most affordable is currently about a quarter of a million dollars!
- Meebits. This NFT marketplace is gas-free (meaning it has no transaction fees) and offers over 20,000 generated unique 3D characters to have fun with in the growing metaverse.
- Autoglyphs. This is another revolutionary and groundbreaking offering from Matt and John that’s located on the Ethereum blockchain. Autoglyphs are the first “on-chain” generative art with a self-contained mechanism governing both the creation and the ownership of the given piece of artwork.
When it comes to NFT marketplaces and the NFT space, Larva Labs are some of the original innovators. In fact, their CryptoPunks project was one of the first demonstrations of NFTs on the Ethereum blockchain. They used to be offered for free, but now regularly go for millions of dollars! That probably explains why Larva Labs total trading volume is a mind-boggling $1.3 billion.
Sports NFT Marketplaces
There are also sports NFT marketplaces that cater to sports fans and aficionados. This makes sense, since sports regularly foster fanatical devotion to certain teams or players.
These sports NFTs usually consist of sports highlights or various digital collectibles, much like how kids collected baseball cards back in the day.
Let’s take a look at a few sports NFT marketplaces:
Designed by Dapper Labs, this is an NFT marketplace that offers a collection of digital trading cards that include NBA video highlights like famous plays, shots, or points. When it comes to sports NFTs, this is one of the first marketplaces that found real popularity with the general audience.
If you buy a pack of the NFTs, then the digital trading card plus the video clips are transferred to your secure crypto wallet. From there, you can rewatch the video clips or re-sell them back on the NBA Top Shot marketplace.
Part of the reason that this NFT marketplace took off with the general public is because it’s so easy to use – it has a natural and intuitive user interface that feels similar to regular online stores or marketplaces. It’s also really easy to get started: just link your Google account to the marketplace and then give your phone number for text verification.
As part of the Binance blockchain, AirNFTS offers a wide variety of NFTs including digital art, video games, photography, social media influencers, and videos. However, sports NFTs is one of its most dynamic marketplaces.
On the sports marketplace, there are a variety of collectibles that can be created (or tokenized):
- Collectible trading cards. Much like real-world sports cards, if you put together an impressive collection, these can actually appreciate in value.
- Sports kits. This includes digital jerseys, uniforms, socks, boots, or wristbands. If you put together a full kit, then it can actually add value to the final NFT.
- Clips. You can either buy or sell video clips or highlights from your favorite players and games.
- Memorabilia. This includes trophies, awards, or even autographs.
This whole marketplace includes a variety of sports like football, hockey, basketball, or soccer. Plus, the NFTs come from a variety of professional leagues like the NFL, NHL, and NBA.
Finally, AirNFTs lets users to also create and sell their own sports NFTs, allowing you to potentially earn money in the form of Binance Coin.
Music NFT Marketplaces
Music NFTs are some of the most dynamic and profitable digital assets on the market right now, so let’s take a look at a music NFT marketplace that’s got everyone excited!
The HUSL is a new music NFT marketplace that’s on the Ethereum blockchain and offers rare NFTs, once-in-a-lifetime experiences, and access to exclusive events. It was created with one guiding principle in mind: to connect musicians and their biggest fans in the growing metaverse.
The team behind The HUSL saw a broken music industry and decided to forge it in an exciting and exhilarating new image. With blockchain technology, this NFT marketplace is deconstructing deep-seated, centralized systems of power that have ruled the music industry for nearly a century. With a basic “freemium” model, it radically prioritizes the creatives and their fans through transparency, diversification, and grassroots interactions.
Plus, The HUSL is built on a few fundamental ideas: exclusivity, collectability, and community. It’s the perfect way for music lovers to connect with each other and their favorite artists in the metaverse while providing collectable, exclusive, and 100% unique music NFTs.
To use The HUSL, you’ll simply need a secure crypto wallet. Once you purchase the music NFT, the digital asset will be transferred to your wallet via secure encryption. Of course, you’ll need a wallet that works with the Ethereum blockchain – a great choice is MetaMask, which is both very secure and user-friendly.
You’ll also need to fund your wallet with outside, “real-world” currency via a fiat-to-crypto platform that supports crypto purchases. Some viable options include Coinbase, Kraken, Bittrex, or KuCoin.
Currently, The HUSL is more focused on hip hop – in fact, you could say that it’s a hip hop platform built by hip hop for hip hop. But 2022 will be a banner year for the marketplace and they’ll be adding a wide variety of new artists to their selection. You won’t want to miss it!