Original author: nobody (Twitter: @defioasis)

Original author: nobody (Twitter: @defioasis)

Compilation of the original text: Colin Wu

Last month, the author took stock of the status quo of the mainstream NFT trading market in the first and second tiers, including Blur and OpenSea with strong competition, LooksRare and X2Y2 that have fallen into the end of trading and mining, and some small and beautiful platforms that live in a corner. After experiencing the upsurge of Bitcoin Ordinals in May and the outbreak of Blend's loan share, the future competition trend of NFT Marketplace has further emerged, and this article will focus on this.

Trend 1: The multifunctional aggregated NFT trading market will become the mainstream

As an NFT trading market, spot trading is the foundation. How to provide users with a high-quality and comfortable trading experience is the key to market competition. The functional module of NFT spot trading has undergone at least two advancements, moving from single to diversified. One is transaction aggregation. In the initial transaction process, the seller is the dominant one, the pending order is the basis for the transaction, and the buyer's quotation is the non-mainstream. The user has gone through the process of selecting and purchasing from a seller on an independent platform, to selecting and purchasing from a seller on an aggregated platform to aggregate pending orders from all markets. The second is Bid Pool. Bid Pool has brought about a fundamental change in the trading model. The buyer's quotation becomes a liquidity pool, and the buyer transfers the option to the seller. The seller can choose to continue to place the order and wait or directly throw it to the buyer Bid Pool for cash. The rarity/picture differentiation is no longer the focus, instead the transaction wait time has been greatly reduced.

Bid Pool was first launched by Blur, and transaction aggregation was also carried forward by Blur. Now OpenSea/Pro has also integrated these two transaction methods, and it must be difficult for latecomers to bypass. Open API is a new open source. In the future, the new NFT Marketplace and the older generation will be mutually aggregated; the concept of liquidity pool in DeFi will introduce depth to NFT transactions, and there are still many places worthy of in-depth study, such as how to Base the Pool on NFT rarity feature transactions.

The path of the NFT trading market is actually the same as that of CEX, and expansion is a powerful means to increase the market discourse group. After spot trading, leverage is almost inevitable. There are currently two paths, one is biased towards on-chain DeFi lending, and the other is futures similar to perpetual contracts.

For NFT lending, X2Y2 and Blur should be the only two mainstream NFT Marketplaces, among which X2Y2 should be the first trading market to establish its lending market. However, unlike X2Y2 fi, which has been launched for a long time in the lending market and has been difficult to shake the exclusive lending market share, after Blur launched Blend, it quickly eroded the original lending market with a devastating momentum. According to DappRadar data, since its launch 22 days ago, Blend has accounted for 82% of the lending volume of all NFT lending agreements, and has gradually equaled Blur's spot trading volume in lending transaction volume. Despite the blessing of Blur points, under the deep bear, I have to sigh that leverage is indeed a good business to increase the increment of the platform. In addition, Binance is the vane of the encryption field. Although the Binance NFT market has been tepid since its launch, it also launched the NFT lending function in late May, which undoubtedly further verified this trend.

Data source: https://dappradar.com/blog/blur-dominates-82-of-the-nft-lending-market

Futures is one of the important and popular directions of NFT infrastructure entrepreneurship. In the past few months, relatively good NFT futures agreements such as NFTPerp, NFEX and tribe 3 have been born. According to the income structure analysis of CEX, futures is the most important form of transaction contribution far better than spot. The high leverage provided by contract trading, with a small gain, infinitely magnifies the gambler's psychology in human nature. Volatility is the soul of the contract. For NFT with a small number and poor depth, it has higher volatility than FT. Blur Bid Pool not only makes instant trading of NFTs possible, but with the use of futures tools, big players can often easily manipulate the floor price of NFTs to make a profit. However, on the bright side, futures provide ordinary users with the opportunity to enter high-net-worth NFTs, and it is also a good way for the trading market to gain more users.

There is no native NFT Marketplace launch or integrated futures market yet. In addition, according to the experience of CEX development, such as Bitget, which started from futures and then gradually added spot transactions, this path may not be unsuitable for the NFT trading market. In the future, will NFT futures agreements gradually increase the spot market and struggle to seize the share of spot transactions? worthy of attention.

LaunchPad is getting more and more attention from NFT Marketplace. For example, OpenSea puts the sale items on the UI homepage and occupies a large space. Element launches the equity pass card EPG/EPS around NFT issuance. In addition, there is also Mint Fun, a trading market dedicated to LaunchPad. For a long time, project sales are often only the project party's own business, but if the trading market can use its own influence and resources to guide it, it is expected to create more high-quality projects and drive the overall development of the market.

The future NFT trading market will be a multi-functional aggregated one-stop market integrating diversified spot trading (pending order + Pool + rarity trading), leverage (loan + futures), and LaunchPad.

Trend 2: Multi-chain narratives will evolve into multi-chain wars

In the past month, we have witnessed the brilliance of Bitcoin Ordinals and BRC-20. CryptoSlam data shows that in the past 30 days, the transaction volume of Bitcoin NFT reached 189 million US dollars (including BRC-20), of which the first ORDI of BRC-20 reached $40 million. Bitcoin has also officially surpassed Solana to become the second largest NFT transaction public chain after Ethereum, accounting for nearly 50% of Ethereum's NFT transaction volume. At present, in addition to the native mainstream market UniSat Marketplace, NFT trading markets such as Magic Eden, Element, OKX NFT Marketplace have integrated Ordinals NFT or BRC-20 or both, and Bitcoin NFT has become a part that cannot be ignored.

Since Ordinals only obeys the security and rules of the Bitcoin network and does not rely on any centralized force to participate, it has almost a natural advantage for NFT storage. Therefore, many communities believe that Bitcoin NFT will be the driving force for the next round of NFT bull market The key, and there will be NFT collections with ultra-high net worth. It should be pointed out that the Bitcoin NFT in this article refers to the collection of Bitcoin Ordinals NFT and BRC-20; at present, there are often discussions about whether BRC-20 belongs to the generally understood NFT. The differentiated characteristics of the trading market focusing on Bitcoin NFT were born.

Polygon cannot be ignored either. Relying on almost insensitive Gas fees and fast transactions, it has become the first choice for Web2 companies to enter NFT. ) Major ticket issuer Platinum Group launches Polygon chain-based NFT tickets for global racing events.

At present, many NFT Marketplaces are multi-chain parallel. OpenSea supports 8 public chains such as Ethereum, Polygon, Arbitrum, Optimism, etc., OKX NFT Marketplace supports Ethereum, Polygon, Avalanche, BNB Chain, Bitcoin 5 public chains, Element supports Ethereum , BNB Chain, zkSync, Bitcoin and other 7 public chains.

The author also mentioned during the current situation inventory that multi-chain will be an important narrative in the context of the NFT bear market, because the multi-chain strategy is the inevitable result of involution. When the competitiveness of the main chain is limited or the market growth of the main chain is insufficient, use the experience learned from the main chain in the competition to expand to other chains, and use dimensionality reduction strategies (incentives and subsidies, etc.) and popularity to attack other chains on the chain. Native platform, occupying market share. This strategy is very suitable for small platforms that cannot get a share of the main chain competition. When more main chain platforms realize this and expand to other chains, a war for native users of the extended chain will be inevitable.

With the continuous increase of the functions of the single NFT trading market and the acceleration of the multi-chain process, this is essentially a competition for the right to speak on the track by trading platforms, but there is still a long way to go to truly have continuous track pricing capabilities. Walk. With its first-mover advantage, OpenSea has defined royalty income for the project side. SudoSwap, X2Y2, Blur, etc. have successively launched a charge against zero royalty. Or other sustainable income paths; Blur first launched Bid Pool, which made NFT instant transactions possible, but it became a tool for NFT giant whales to manipulate the market dump and pump. Exacerbated the continuous loss of NFT users.