On-Chain Data Suggests Crypto Exchange Traders May Not Be So Keen on NFTs

Crypto exchanges are finding it tougher to onboard users onto their NFT marketplaces based on sales data from leading platforms.
Image source: Medium/IrisNet blog

Quick take:

  • Cryptocurrency exchange-based NFT marketplaces are posting extremely low volumes.
  • They can’t seem to replicate their success in crypto trading in the NFTs space.
  • Coinbase NFT has averaged a daily transaction volume of about 1 ETH over the past five days.

Cryptocurrency exchange platforms are struggling to replicate their success in crypto trading services in their NFT marketplaces. For instance, Coinbase’s non-fungible token (NFT) marketplace has onboarded just over 15,000 users and about 4,280 ETH in all-time transaction volume.

An NFT is a blockchain-based digital file representing proof of ownership of a digital collectible, artwork, virtual merchandise, music track or video clip. NFTs became one of the most exciting segments of the crypto industry during the pandemic with artists and celebrities joining the crusade in search of alternative streams of income.

Since then, leading crypto exchange platforms, including Coinbase, Binance, FTX, Crypto.com and ByBit have all launched their own NFT marketplaces to augment their offerings.

However, only a few of these platforms have made on-chain data related to NFT transactions available to leading analytics platforms.

According to a dashboard prepared by CryptusChrist on Dune Analytics, Coinbase NFT has averaged about 1 ETH in transaction volume over the past five days. Since its launch in March 2022, the platform has accumulated a total volume of about 4,280 ETH ~$6.8 million.

Source: Cryptuschrist/Dune Analytics

The platform now boats about 15,300 NFT traders, a significantly small number compared to the crypto exchange platform’s 108 million registered users. 

In November last year, Coinbase revealed that it has received more than 2.5 million emails seeking to register for its upcoming NFT marketplace. Coinbase CEO Brian Armstrong went on to suggest that the company’s new NFT marketplace could be bigger than its cryptocurrency business.

However, judging by the figures compiled by CryptusCrust on Dune Analytics, it looks like only a small number had the intention of becoming active NFT traders on the platform.

Coinbase’s biggest rival, Binance has experienced better success with its NFT platform. According to a Dune Analytics dashboard created by BrownBoy BNB Chain NFT registered a transaction volume of $460,000 on November 6. 

Source: Brownboy/Dune Analytics

The BNB Chain NFT marketplace looks to be faring better than Coinbase, registering a transaction volume of more than $4 million on November 1, and managing to top the $1 million mark for the following three days before dropping during the weekend.

But data on the BNB Chain NFT is still scanty with no statistics on user count and lifetime sales.

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