The NFT craze began in 2014 with the creation of Quantum, the first known NFT art piece in the form of an octagonal animation.
The NFT market has since exploded, with Beeple’s “Everyday: The First 5000 Days” selling for a record-breaking $69 million in 2021. The NFT market is now valued at over $40 billion according to the 2021 NFT Market Report.
As the demand for NFTs continues to rise, new NFT marketplaces are emerging in the crypto space. While some individuals are exploring their creativity as NFT creators, our team specializes in helping startups and established businesses establish their own NFT marketplaces. Our recent NFT project provides valuable insights and lessons on creating a successful NFT marketplace.
We will share with you our expertise on how to build a top-notch NFT marketplace, including a list of must-have features and potential challenges based on our hands-on experience.
Get in touch with us for professional nft marketplace services and take the first step towards creating your own NFT marketplace today.”
What Is NFT Marketplace?
An NFT marketplace is a digital platform where NFTs (non-fungible tokens) can be bought and sold. NFTs are unique assets in digital format, including art, music, photos, sneakers, Twitter posts, etc. that cannot be exchanged for something else.
NFT marketplaces are built on blockchain technology, typically Binance Smart Chain or Ethereum. While some may be wary of investing in NFTs due to the fluctuating nature of blockchain technology, let’s dive deeper into understanding how NFT marketplace applications work.
How Does NFT Marketplace Work?
Creating an account on an NFT marketplace provides access to several features such as:
- Browsing NFTs for sale
- Minting new NFTs
- Storing and displaying NFTs
- Adding payment methods (crypto wallet or credit card)
- Buying and selling NFTs through fixed price or auction
- Connecting with creators and participating in the community
The NFT marketplace records each transaction on its blockchain, reflecting the change in ownership. Using an NFT marketplace is straightforward, and users don’t need to have in-depth knowledge of blockchain technology.
The integration of blockchain technology in NFT marketplaces should not be a cause for concern but rather viewed as an opportunity to add value to the NFT marketplace. Embrace the benefits of blockchain and take advantage of the security and transparency it provides.
Types Of NFT Marketplace Platforms
An NFT marketplace allows for buying and selling unique digital assets, but specific offerings vary by platform. These digital assets can range from sports and gaming collectibles to art and music.
There are two main types of NFT marketplaces:
Universal Marketplaces – Similar to eBay, these marketplaces offer a wide range of NFT collections to attract a diverse group of users.
Example: OpenSea which collects various NFTs including art, sports collectibles, virtual worlds, trading cards, and domain names. A list of art nft marketplaces you can find on our blog.
Niche Marketplaces – These marketplaces cater to specific and rare assets, appealing to users with specific interests. For example, SuperRare is a niche marketplace focused on digital artworks by leading concept artists.
In recent times, the NFT art marketplaces have gained significant popularity and are considered a great example of niche marketplaces
Why Create An NFT Marketplace
NFTs are still in their early stages, but some key factors point to a promising future for the NFT market. The increasing demand for unique digital assets, the growth of the crypto industry, and the adoption by mainstream businesses and organizations are some of the factors driving the growth of the NFT market.
A guide on how to build an NFT marketplace you can find on our blog.
Additionally, the ability to easily track ownership and transfer of assets using blockchain technology provides security and trust to buyers and sellers in the NFT marketplace. With continued advancements and innovations, the NFT market is poised to grow and become an integral part of the digital world.
If you need a blockchain development company to help you create your NFT marketplace, then we are at your service.
NFTs have seen rapid growth in recent times with the NFT market worth around $3 billion, a 30 times increase by mid-2022.
Millennials in the US are more likely to collect NFTs with 23% of them involved in the activity. On a popular NFT marketplace, OpenSea, around 250k people trade NFTs every month with over $3 billion in trading volume in August 2021. Top NFT marketplaces can be found on our blog as well, where you can get inspired.
Here are features that all NFT marketplaces must have:
NFT Marketplace Must-Have Features:
- User accounts and authentication
- NFT creation and management
- Secure wallet integration for NFT transactions
- Listing, buying, and selling NFTs
- Search and filter options for NFTs
- Reputation and feedback system for sellers
- Payment gateways for buying NFTs
- User dashboard to manage their NFTs
- Admin panel to manage the marketplace
- Analytics and reporting tools
NFT Marketplace Nice-to-Have Features:
- User-friendly design
- Social sharing options
- Customizable NFT pages
- In-app notifications
- Mobile compatibility
- Advanced search options
- User groups and communities
- Auction system
- Marketplace events and promotions
- Marketplace statistics and trends analysis.
Sign In/Sign Up:
- Allows users to sign in/sign up on the platform using email/social media accounts
- Includes “Forgot password” and “Recover password” functionalities
User Profile:
- Allows users to add personal information like name, photo, bio, budget, and interests
Payment Method:
- Allows users to add payment methods like credit card or crypto wallet
- Includes card verification with temporary transactions
NFT Collection Creation:
- Allows creators to create NFT collections for sale
- Includes functionality to add details like title, description, image/video/gif, price, tags, ABIs, edition size, deal type (auction/buy now), drop date, and limitations for participation
Listing Creation:
- Allows users to place NFTs for sale
- Includes functionality to select a currency, duration, payout method, deal type (fixed price/auction), add fixed price/starting price/min selling price, and confirm listing
Deals Dashboard:
Buy NFT:
- Allows users to view their NFTs listed for sale and edit made offers
- Allows users to choose the type of purchase (primary/secondary) and set a price/bid amount
- Includes functionality to enter payment information and select payment method
Search & Filters:
- Allows users to search for NFT collections using filters like creator name, collection name, and tags
NFT/Collection Page:
- Allows users to view details of an NFT or collection
- Includes information like NFT/collection name, image, creator, owner, edition size, description, and general stats (market volume, floor price, etc.)
Admin Panel:
- Allows administrators to upgrade users to creators, upgrade creators to VIP creators, deactivate/blacklist users/creators, and control offer curation on pages, including a front-page feature
Nice-To-Have Features:
- The list of nice-to-have features may vary and depend on the NFT marketplace. Examples include community forums, social sharing, messaging, and reputation systems.
Here are some important things you need to focus on if you want to develop an NFT marketplace:
Developing Expertise in Blockchain Technology
Since blockchain technology is at the heart of NFT marketplaces, it is essential for developers to have a deep understanding of it.
Partnering with Key Players in the Industry
We realized the importance of partnerships early on. To ensure that the NFT marketplace is up-to-date and in line with industry trends, you must partner with key players in the industry, including NFT creators, collectors, and experts in the field.
Ensuring Security and Scalability
With millions of users expected to use the NFT marketplace, it is crucial to ensure that it is secure and scalable. Your developers need to implement robust security measures, including encryption and secure authentication. At the same time, you must design the platform to be scalable to handle an increasing number of users and transactions.
Focus on User Experience
As mentioned earlier, user experience is critical in NFT marketplace development. Your team should put in a lot of effort to create a user-friendly platform that would attract and retain users. This will involve designing an intuitive interface, streamlined processes, and helpful guides to help users navigate the platform with ease.
AlphaCorpConsulting is a full-cycle top blockchain development company that has a team of experts in NFT marketplace development.
If you’re looking to build your own NFT marketplace, feel free to contact us for a consultation.
How Much Does It Cost To Build An NFT Marketplace?
The cost of developing an NFT marketplace can range from $100,000 to $150,000 if done in-house, while outsourcing the project to a software development company can cost around $120,000 to $180,000, including third-party services integration and the Discovery stage.
The cost may increase based on the level of customization needed. To save on costs, outsourcing the project to a software development partner and combining it with ready-made solutions is a good option.
They can be either universal or niche, and the NFT market is attracting a lot of attention.
However, creating an NFT marketplace requires extensive research, and challenges such as offering the best user experience, finding product/market fit, and the use of blockchain technology may arise.
The cost of building an NFT marketplace varies but can range from $120-300K, depending on the level of customization needed and whether software outsourcing is used. Uptech has 6 years of experience in product development and can assist in turning your NFT marketplace idea into a successful product.
