Launched a few weeks ago, Coinbase ‘s NFT marketplace is struggling to take off. The figures are not good and the success far from that of competitors such as OpenSea or Looks Rare.
A complicated first month for Coinbase NFT
Launched a little over a month ago with great communication and marketing efforts, the 100% NFT market place of the American giant Coinbase is off to a rather slow start. The first numbers from the platform are out and they are not good. Indeed, since April 20, Coinbase NFT has only processed 5,446 transactions for just $1 million in sales .
These figures are light years ahead of its main competitors. By comparison, industry leader OpenSea processed more than 4 million transactions for around $4.6 billion in the month of May. Another major competitor, Looks Rare, handled a volume of over $2 billion.
Also read: Coinbase loses over a quarter of its net sales
Why such a failure?
First of all, the Coinbase platform is relatively new and has to face competition from already established players. We have cited OpenSea or Looksrare which are establishing themselves as the spearheads of the NFT market.
Coinbase’s NFT marketplace also serves as a showcase for collections that buyers can buy on platforms like OpenSea or Rarible. Thus, she sees traffic fleeing her marketplace to go to these platforms.
Sales are certainly starting to increase, especially over the last 10 days, but the volume remains anecdotal for the time being compared to the giants of the sector. The deteriorated situation of the market as a whole also impacts the figures of the NFT sector which have been in constant decline for several days. In a climate of advanced uncertainty, many investors prefer to place their money elsewhere than in highly risky assets.
The year 2022 is decidedly complicated for Coinbase, which has also seen its share price fall for several weeks. The latter even reached a historic low at the beginning of the month at just over $40, a drop of almost 80% since January 1 st . The price has since recovered somewhat to reach $72, at the time of writing these lines.
The next few months will tell us if Coinbase manages to rectify the situation. The launch is certainly complicated, but one of the world leaders in terms of crypto has the means and resources to reverse the trend. Coinbase remains the number 1 consumer exchange in the United States and could take advantage of this domination to boost its NFT marketplace.
Also read: Ripple Price Forecast: Coinbase CEO Brian Armstrong speaks out loudly on XRP