Non-fungible tokens (NFTs) have sent the world into a rave, and it does not seem to be going anywhere soon. Statistics from The Block revealed that there had been a significantly high increase in the total monthly NFT marketplace volume, moving from $314 million in March 2021 to $2.53 billion in February 2022. A whopping 16 times the initial output. Even though the overall market capitalization has dropped since the crypto winter, NFTs continue to draw high trading numbers. In November 2022, NFT marketplaces recorded over $250 million in trade volume.
These stats show how much NFTs have been engaged in recent times, and it is most likely that this will be a continued trend. It is no coincidence, however, that this jaw-dropping rise in NFT engagement coincided with the creation of NFT marketplaces and NFT marketplace aggregators. This article briefly discusses NFT marketplaces and the NFT marketplace aggregators in much more detail.
What is an NFT marketplace?
The NFT marketplace is just like other physical markets; the only distinction is that it is a digital market. Anyone can purchase or sell any digital assets or NFT here using cryptocurrency.
This marketplace is also used to develop NFTs or any other digital assets and to keep and display trading activities on the said assets or tokens. In simpler terms, an NFT marketplace is where NFTs are traded, and cryptocurrency is the currency spent in exchange for the NFTs.
The users can either buy the NFTs at an already fixed price, or they can be made to bid for them in an auction. The NFT marketplace is not different from any online market; the significant difference is that the transactions are done using cryptocurrencies, and the goods given in exchange are NFTs.
Different platforms have set up their NFT marketplaces as it appears to be lucrative. Rarible was once the leading name in the NFT marketplace industry. However, Rarible was replaced by OpenSea, which became the world’s largest NFT marketplace.
Despite this, many other platforms have stepped up to the plate. LooksRare created a platform with significant incentives to entice bulk traders, whereas Theta Drop, SuperRare, and Autograph decided to go into specialization and concentrate on particular NFT market areas. Even major cryptocurrency firms like Binance have entered the fray with their own NFT markets.
What is an NFT Marketplace Aggregator?
Have you been to a website that compares prices from various internet retailers for a given product? That is a website that aggregates online sales, called an aggregator, as you might probably have guessed. An NFT marketplace aggregator performs pretty much the same function.
As the name suggests, an NFT aggregator is a platform (centralized or decentralized) that combines or, better still, gather data from several NFT marketplaces. The data is presented in a single user interface to enable investors to make well-informed decisions on what NFTs to buy and the advantage(s) that buying from one marketplace has over the other. This is more practical because an investor will not need to visit numerous markets to decide, as all the options are placed before them in a single interface making the decision-making process less tedious.
Perhaps a more relatable example is Ubereats, an offshoot of Uber that keeps tabs on numerous restaurants and their offers and allows users to place an order from any of them to be delivered to the user. An NFT marketplace essentially does the same thing but with NFTs.
The advent of NFT aggregators helped solve the interoperability problem in the NFT world. Consider this, at the moment; there are about 200 NFT marketplaces at the time of writing. Without an aggregator, you cannot be sure you are getting the best value for your money because you are unlikely to scroll through multiple pages on the various NFT marketplace platforms looking for the best deal possible. Chances are that you will miss out on a sweet deal somewhere along the line as you grow weary in your search.
However, with an aggregator, you simply have to put in the right query, and you are a click away from having several options displayed before you and you make your choice. Asides from this, you can filter the search results to narrow down your options to get the best choice while also getting to save gas fees which users would have spent jumping from one marketplace to the other.
How do NFT Marketplace Aggregators work?
NFT Aggregators collect different transactional information from numerous NFT marketplaces. The obtained data is then compiled in a single catalog or interface, providing a single access point for the platform.
This single-entry point makes it straightforward to receive data when it is queried. The received data is then categorized. Data categorization involves grouping the collected data into categories based on various metrics or criteria, like rarity, timing, price, rating, etc. This makes data analysis for potential customers or investors more straightforward.
The aggregators would also have a search engine on its interface, ensuring that even though the precise NFTs are not listed, the users can keep track of their preferred NFTs so they may easily add them to their list. Additionally, some aggregators include filter options to enable users to locate the particular tokens they require. Buyers can then easily stack numerous NFTs and purchase them all at once, sparing them the hassle and additional gas costs.
Advantages of Using an NFT Marketplace Aggregator
A single interface for all
An NFT aggregator supplies numerous dimensions of data and housing a vast amount of NFT data in its role as a broad-based data supplier in the NFT industry. Users require just one platform to comprehend the state of the market and NFT data and even to make direct purchases via the NFT aggregator. This ensures that the time and strain required to hop from one marketplace to the other is reduced significantly as all the information needed is present on one page.
Some NFT aggregator platforms offer bulk purchases as an option on their interface. The buyers can quickly stack up the NFTs they would want to purchase under one platform by maximizing the search and filter features present on the platform. This feature saves the time that users would have spent surfing from one marketplace interface to the other, looking for the same tokens. It also helps save gas fees spent moving from one page to the other. Some platforms even allow users to profit by purchasing in bulk and batches.
Improved search efficiency
Thanks to the search engine functionality of the aggregator, which takes advantage of metadata, users can search for any NFT they want using any language. The powerful sorting and search algorithms greatly enhance the search results ensuring that the information pool is efficiently used. The algorithm fetches information from numerous marketplaces ensuring that more suitable deals are not missed.
Allows for better search analysis
With an aggregator, a user has more options displayed before them. This means that the user can compare and contrast their options and make a well-informed analysis to avoid making the wrong decisions and eventual regret. The presence of metadata means that information about goods is easily found, and eventually, an investor can make the correct decision with the vast information available to them.
Save time and expenses
The presence of an aggregator ensures that the time spent hopping from one marketplace platform to the other is saved. The maximal use of the search and filter options means that investors do not have to visit many pages to get the best available deal in the market.
Also, expenses are saved as users do not need to pay gas fees as they move from one point to another on the aggregator platform. A gas fee is the amount of money paid for transactions on the Ethereum blockchain. The presence of an aggregator means that users can save gas fees which they would have spent moving from one page to another on numerous NFT marketplaces.
A major challenge most users face when interacting with web3 platforms is the technicality. It is sometimes difficult for an average user to make sense of trading data or other platform features. Now imagine having to interact with multiple platforms simultaneously and struggling to adapt to their nuances.
However, through NFT marketplace aggregators, users can avoid such issues. For instance, since they can follow trends on multiple marketplaces in one place, they would not need to learn how to use them individually. Not only does it enhance the user experience, but it also improves certainty as the user will know what assets they are buying, selling, or merely taking interest in.
Examples of top NFT Marketplace Aggregators
While there has been an increase in the number of aggregators out there, some of the top NFT marketplace aggregators include:
Genie.xyz is considered by many to be the maiden NFT marketplace aggregator to be developed. Genie.xyz allows users to trade NFTs on most marketplaces and access a collection of available NFTs on several NFT marketplaces. OpenSea, LooksRare, NFTX, NFT20, and X2Y2 are just a few of the NFT marketplaces that Genie covers. By simultaneously listing on OpenSea and LooksRare, Genie also enables sellers to increase the exposure of their listings.
You can make a shopping list with Genie and buy NFTs in batches. Collectors can swiftly buy several NFTs at once, a process known as “sweeping the floor.” The Genie team advises consumers to purchase no more than 20 NFTs in a single transaction.
Genie.xyz allows customers to conserve up to 40% in gas costs while allowing users to make bulk purchases of up to 60 NFTs in just one transaction.
Among Gem.xyz’s key features are the shopping cart, rarity, flash bot, and whale buy notification. These capabilities give Gem’s consumers access to the most popular NFT market movements without charging fees, giving them a chance to benefit during pivotal times.
Five well-known NFT marketplaces are covered by Gem.xyz: Opensea, LooksRare, NFTX, and X2Y2. While expanding its network and adding new features, Gem will continue to run as a standalone business. Later, the platform will gradually include some of these new capabilities in OpenSea. Additionally, Gem.xyz, like Genie.xyz, enables you to save up to 40% on gas costs. Gem.xyz was recently purchased by the top NFT marketplace OpenSea.
Rareboard is another popular NFT marketplace aggregator on BNB Chain. Primarily, the platform lists NFTs from some of the biggest marketplaces on BNB. This includes BinanceNFT, NFT Trade, NFTKey, PancakeSwap, Galler.io, etc.
A key feature of this aggregator is the timeliness of data on the rarity and price of NFTs. Through this feature, users get up-to-the-second data on all NFTs listed, which helps them make better decisions regarding buying or selling NFTs.
In addition, users can mint and list their NFTs on Rareboard. The platform supports MetaMask, WalletConnect, BitKeep, and Binance Chain wallets.
Flip is a marketplace creator co-founded by Sam Hotchkiss, Jennifer Jacobs, and Brian Krogsgard in 2021. Like other marketplace aggregators previously mentioned, it allows users to track the price and rarity of NFTs across multiple marketplaces.
Some of the marketplaces include OpenSea and LooksRare. Asides from aggregating NFT marketplaces, Flip adds a bit of flair to the user experience through its customization.
The platform allows users to create custom folders to curate their NFT experience to their preferences. In addition, there’s a feature that allows users to have all their NFT wallets in one place. This means users wouldn’t have to go through the stress of viewing assets individually. It’s all in one place and seen all at once.
The platform supports MetaMask Wallets and hints that more wallet services will come later.
One of the unique features of web3 and metaverse is the ease of use. The web3 space has grown considerably over the years to ensure this, and NFT marketplaces are proof of that. The NFT rave is here to stay, and the innovation of NFT marketplaces and, by extension, NFT marketplace aggregators have come to ensure that the buying and selling process for NFTs has become much more effective and customer friendly.
The aggregators help to save time, gas costs, and the stress that goes into scrolling from page to page in search of the most suitable token of your choice. The aggregators have ensured that the most suitable token for your preferences is available with a button click.
This goes to show that web3 and metaverse have taken a new turn. It would be interesting to see what else the ever-evolving world of blockchain technology has in store for us all.