In the NFT world, investors, traders, collectors, artists, and enthusiasts are on a continuous exploration hunt. Getting ahold of valuable NFTs definitely needs a lot of research and guidance, but what’s also important is finding the right platform and marketplace. In order to purchase NFTs, you need either a primary or a secondary marketplace.
What are NFT Marketplaces?
There are two types of NFT marketplaces: Primary and Secondary. So, what’s the difference?
A primary marketplace is a direct transaction between the creator and collector. For example, you can purchase NBA Top Shot’s NFTs from their official marketplace on the website and not from any other platform. Secondary marketplaces, on the other hand, are platforms where users auction and resell various NFTs. For instance, BAYC doesn’t sell NFTs on its own official website. Instead, it auctions them on OpenSea, which is a secondary marketplace and not directly related to the club.
In this article, we will be comparing three of the top secondary marketplaces; OpenSea, Rarible, and x2y2. Here’s everything you need to know.
OpenSea NFT Marketplace
OpenSea is an American online secondary NFT marketplace founded back in 2017 by Devin Finzer and Alex Atallah. Its headquarter is in New York City and it’s one of the world’s largest NFT marketplaces. Axies, ENS names, CryptoKitties, Decentraland, and other unique digital assets are available for purchase, sale, and discovery on OpenSea. On the platform, user-owned digital products can be found in the form of gaming items, domain names, digital art, music, collectibles, and other assets supported by a blockchain.
Pros
- Multiple blockchains, such as Ethereum and Solana.
- Integrates with more than 35 applications and wallets.
- Huge selection of NFTs and a wide range of NFT categories.
- Supports Android and iOS software.
- Creators receive up to 10% Royalty Fees on their items.
- Supports Lazy Minting.
- Provides users with rankings and stats by volume.
- Trading volume on OpenSea has highly exceeded those on other platforms.
Cons
- There’s no governance token for the community and involvement is minimal.
- Buyers are charged a 2.5% service fee.
- High minting fees.
- Only allows crypto payments.
- Centralized governance, managed by OpenSea itself.
- Not available in all countries
Rarible NFT Marketplace
Rarible is an American NFT marketplace that was established in 2020 by Alexei Falin and Alexander Salnikov. It is a marketplace focused on creators and has a community governance program. In other words, it is the first NFT marketplace that is community-owned. Users are able to produce, sell, and collect digital goods that are blockchain-secured. On the platform, just like OpenSea, digital goods vary between art, gaming, collectibles, domain names, music, and much more.
Pros
- Multiple blockchains, such as Ethereum and Solana.
- Integrates with more than 15 applications and wallets.
- Supports iOS software.
- Has its own governance token; RARI, and high user involvement.
- Creators receive up to 50% Royalty Fees on their items.
- Supports Lazy Minting.
- Provides users with rankings and stats by volume.
- Allows crypto and credit card payments.
- Decentralized governance; RARI holders are able to take a more active role in the protocol’s decision-making.
- Available in 190 countries.
Cons
- Buyers and sellers are charged a 2.5% service fee.
- Creating a wallet with Rarible is a tedious process.
X2Y2 NFT Marketplace
X2Y2 is an NFT marketplace that emerged in February 2022. The term X2Y2 comes from a mathematical equation that results in a perfect circle. “Users who stake their X2Y2 tokens on the platform will receive a % of the fees for all NFT trades proportional to their share”. Therefore, x2y2 is a completely decentralized NFT market that focuses on its community. The X2Y2 token, which is presently trading at $0.32 with a market valuation of $42 million and a total supply of 1 billion tokens, is also the governing token of the X2Y2 marketplace.
Pros
- Supports multiple blockchains, such as Ethereum and Solana
- Integrates with more than 10 applications and wallets.
- Has its own governance token; X2Y2, and high user involvement.
- Users have the option to bulk list all of their NFTs at once or just a few of them.
- Traders can buy a number of NFTs in bulk at once while only paying a single gas fee.
- Decentralized governance; X2Y2 holders are able to take a more active role in the protocol’s decision-making.
- First NFT profit-sharing platform, where users who stake their token receive % of the charges for all NFT trades relative to their share.
Cons
- Doesn’t support Android and iOS software; not available as a mobile app.
- Royalty fees are optional; buyers decide whether or not to pay royalty fees for creators.
- Still in its early stage.
Which One Should You Choose?
Are you wondering which platform is best? OpenSea and Rarible are two well-known markets that allow producers to mint digital art NFTs and sell them to collectors. X2Y2, on the other hand, is undergoing intense development and seems to have its eyes on the lead as well. As per this article, you can see that OpenSea, Rarible, and X2Y2 have their own strengths and weaknesses in comparison to each other. Therefore, choosing the ultimate platform depends on what you’re looking for. Heck, you can even choose to engage with all three, each for different purposes.
Let’s put it this way. Online marketplaces from OpenSea, Rarible, and x2y2 connect buyers and NFT developers. However, Opensea is a superior alternative for NFT developers and buyers looking for a greater variety of investment options and lower minting costs. And with the latest NFT royalties fiasco, x2y2 is receiving mixed reviews for their optional royalty payments.
Let’s Wrap It Up!
In conclusion, the NFT world is huge! Digital art is thriving in this era, even outside of the realm of entertainment. Moreover, NFTs are attracting a lot of admirers. Thus, it is important to provide ideal digital platforms for enthusiasts to help them with their job.
There are so many options available that making a decision could be difficult. So, think about the features and feel at ease enough to spend some time experimenting with several platforms to determine which is most suitable for you.