Struggling NFT Market Eyes Coinbase Rescue
Upcoming NFT shop for 2 million users acts as a possible catalyst for investors
After a period of relative immunity to a broader crypto market decline, non-fungible tokens (NFTs) are seeing a significant drop. Most top collections have lost more than 40% of their value from all-time highs, while trading volumes are close to lows last seen since July 2021.
Amid the decline, crypto exchange platform Coinbase revealed imminent plans to unveil its widely anticipated NFT marketplace. The platform received over 2 million sign ups post-announcement, leading to hopes that the launch might help reignite the faltering NFT market.
In this week’s Cash.Tech Newsletter we review the current state of the NFT market, as well as how Coinbase’s involvement could affect the nascent industry. First, we will bring you a roundup of what the Cash.Tech development team has been working on this week.
Cash.Tech development update
This week, the Cash.Tech team completed a series of core integrations within the Merchant Protocol. For instance, the team finished connecting the frontend layout of the merchant registration process with the main API. We have also finalized designs for the product catalog with plans to develop an API for the product catalog in the coming week.
Another imminent development step is creating a design for Account Settings, particularly a feature that allows merchants and buyers to switch between accepted currencies. The team will also document requirements for the Merchant Settings and Balance listing. These options allow merchants to modify store names and view balance for $CATE and other owned cryptocurrencies, respectively.
The Cash.Tech team continues to carefully explore and deploy Merchant Protocol features with the goal of building an application that is market-ready and miles ahead of existing competition. We will continue to share timely updates with the community as the product approaches its initial release.
NFT trading volume hits 8-month lows
The NFT market took the world by storm last year, generating $23 billion in trading volume. Fast forward to the new year, the overheated market is attracting fewer users, causing trading volumes to plummet. According to data from TheBlock, weekly trading volumes for NFTs recently dropped to an 8-month low, reaching figures last seen since July 2021.
The drop in trading volume is not entirely surprising. The value of the top three NFT collections such as Crypto Punks, Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club, recently recorded 40% declines from their previous all-time highs, adding flames to alleged mainstream rumors of a “great NFT sell-off.”
Noteworthily, the recent $APE token airdrop to BAYC holders resuscitated trading volumes and NFT prices, but in a fashion that provides only short-term relief. A greater influence is arguably required to send NFT prices back to previous highs and many experts are betting on Coinbase’s planned NFT marketplace providing the catalyst.
BAYC volume spiked following token airdrop (Source: NFTPriceFloor)
Will Coinbase spark another run for NFTs?
Coinbase is the largest trading venue for trading cryptocurrencies in the United States, and also boasts some 50 million customers. This week, the company provided a long-awaited update regarding its planned NFT marketplace, first announced last year.
“Wen Coinbase NFT? Soon,” tweeted the official Coinbase NFT account, before adding that the exchange was meeting with creators to design the product based on market feedback, and would bring it to market soon. The involvement of the world’s largest exchange into the NFT space is one many believe could spark another run for NFTs.
Coinbase’s NFT waitlist has attracted over two million customers, a figure that is 75% higher than the combined 505,000 users reported in the past 30 days by major NFT trading platforms,
OpenSea and LooksRare.
Prospective and existing investors betting on immediate positive results from Coinbase’s venture into the NFT space must remain wary of the possibilities. A failure to meet user expectations at launch could cause a further decline in public interest NFTs, and potentially extend a looming bear market. On the other hand, an early success could see Coinbase choose to scale its upcoming NFT marketplace to its global user base, further accelerating the adoption of NFTs.
HODL your favorite NFTs with Cash.Tech Wallet
Cash.Tech Wallet is designed to provide a superior user experience for NFT investors, with native support for assets across Ethereum, Polygon, and BNB Chain (support for more chains coming!). Aside from the intuitive NFT display functionality, Cash.Tech allows you to easily send, receive and trade NFTs in your favorite marketplaces. Try out the Cash.Tech Wallet today!
Cash.Tech is already live on Mainnet for Android and iOS users. Android users can now access the app on Google Playstore, with the iOS version coming to the Apple Store in the coming weeks! Apple Users can access Cash.Tech via https://testflight.apple.com/join/In3h8jr9.