Posted by Having landed on this blog, you probably would prefer to launch an NFT marketplace platform. According to Nonfungible.com, marketplace-based NFT sales have skyrocketed, especially the per-week sales volume increasing anything between $10 million and $20 million (on average), according to nonfungible.com. We’re in May 2022 (while writing this article), and there have been some wild weeks during the second and final quarter of 2021.
Take Q2 2021 (for instance); the weekly NFT trading volume has increased from $50 million to almost $200 million. Industry insiders believe that 2022 will outpace last year’s numbers.
Having said all these, what’s in it for you? The point is that building an NFT marketplace on Solana is the best business opportunity. Do you wonder how & why? Let me clarify in the following words.
You Know What An NFT is. But Still…!
A piece of digital content linked to the blockchain is referred to as a “non-fungible token,” or NFT. Texts, photos, digital artworks, audio recordings, domain names, trade cards, and in-game objects are examples of this.
The standardization of NFT issuance promotes greater interoperability or the capacity of blockchains to communicate with one another. As a result, these non-fungible tokens can be used in various decentralized applications.
A Primer on NFT Marketplace
A peer-to-peer trading platform best defines the NFT marketplace mechanism, which facilitates seamless trading. You hear all these numbers – NFT sales reach record numbers, this, and that; however, the fact is that the bulk of NFT sales happens on marketplace platforms.
While the functionality remains peer-to-peer trading, NFT marketplaces fall under two broad categories;
- All-in-one NFT Marketplace
This kind of platform sells more than two blockchain-based collectible tokens, as to how Rarible does with art punks, digital collectibles, and more. OpenSea and Mintable are other popular examples of this kind of marketplace. These platforms enlist all categorical NFTs, serving people from multiple niches. You can build your multi-niche white-label NFT marketplace on Solana to attract a wide range of NFT enthusiasts from around the world.
- Niche-specific NFT Marketplace
This kind of platform focus on offering specific items rather than a whole. Have you heard about the platform Valuables, which sells tweets from celebrities? I hope you will reminisce about this platform that sold Jack Dorsey’s first-ever tweet for over $2.9 million back in March 2021.
Why Solana?
Solana is an open-source, public blockchain that enables smart contracts, non-fungible tokens (NFTs), and decentralized applications (dApps). The SOL currency, native to Solana’s blockchain, provides network security and a mechanism for transferring value through staking.
Solana’s network can theoretically handle 65,000 transactions per second, a considerable increase over Bitcoin’s seven transactions per second and Ethereum’s 15 transactions per second. (TPS). When combined with the high gas taxes on the Ethereum blockchain, Solana provides a considerably lower barrier to entry, allowing it to grow its user base rapidly.
How to Build – NFT Marketplace on Solana?
The main advantage of Solana is that it can handle more transactions per second. While your marketplace is filled with footfalls, the network can handle payment transactions without any congestion.
- Choose an Approach
There are two approaches to the peer-to-peer NFT marketplace development on Solana: one follows the custom development route, while the other takes the white-label route. The decision depends on your business requirements, your community preferences, and more. However, taking the white-label route could save you some bucks; mind that!
- Choose a Niche
It is preferable to invest in the vertical market rather than the horizontal market to maximize your chances of success. The horizontal market’s suppliers sell everything to everyone. Vertical market providers specialize in offering services or products to a specific target audience.
Do not try to sell too much (at the start); instead, focus on a specific set of niche NFTs, like how Glass Factory sells digital hologram NFTs. This strategy is more promising because niche-specific platforms better understand their specialization and target audience, allowing them to design a better user experience, build a more specialized website, and gain a competitive advantage.
- Create a Community
A community usually means the direct relationship between an NFT project and the customers. A pre-formed community around your NFT marketplace on Solana will reduce the marketing budget and let the network (community) take over!
Let’s take CryptoPunks (for instance) – the algorithm-reliant art punks project that launched in 2017. Much of the CryptoPunks’ community’s activity has been on Discord application, including the AMA (ask-me-anything) sessions, giveaways, etc.
- Design & Development
Building an NFT marketplace from scratch includes well-bred functionalities; however, you must invest a lot of time and money in it. On the other hand, embracing the white-label NFT marketplace development on Solana can bring you good deeds to your business.
One major advantage of white-labeling is that it safeguards sensitive user information from phishing attacks. It is especially crucial for non-fungible token marketplaces, where failing to follow security laws might result in serious penalties.
- Testing
NFT marketplace testing allows you to detect flaws in our code more quickly. Using the command-line interface, you may test code by running automated tests or having engineers manually check its functioning.
Conclusion
Non-fungible tokens (NFTs) draw unforeseen attention from a wide range of collectible enthusiasts. If you’re an entrepreneur reading, building an NFT marketplace on Solana is the safest and best you can place!
Would you need a technology partner to process your venture? Do you need them on an affordable budget? Drop us a line.