Coinbase NFT technology turns out to be a total failure
After three months, the NFT technique used by Coinbase has proved to be a complete failure.
Since its introduction on April 20, Coinbase NFT has only seen a trading volume of $ 2.9 million, with an average daily volume of around $ 37,000, according to open source cryptocurrency provider Dune.
The launch of Coinbase NFT, a social marketplace for non-fungible tokens, has been completely halted by Coinbase, the largest US-based cryptocurrency exchange and one of the oldest controlled marketplaces in the sector.
NFT error
The trading volume for LuxRay, which began just after dominating the NFT market in January, is close to $ 2.53 billion.
Although it is impossible to find the exact causes of Coinbase’s apparent failure, the time to highlight dubious NFT initiatives such as Makeover (the once hyped archive that was released) has been postponed months into the NFT bull cycle (and four months later). that it was published). scheduled to begin).
To put this in perspective, approximately $ 5.9 billion in trading volume was recorded over the same time period on OpenC, the largest NFT platform in the industry. Eventually dropped after being accused of manipulating the drop, and it did not help to go on the platform’s debut.
In an effort to stand out from its rivals, Coinbase positioned itself as the “Web3 Social Marketplace for NFTs” when it launched its NFT Marketplace. But it seems that no one cared because the goods arrived late. The NFT market was well on its way to achieving the same trading volume it had before the NFT bull run began when the stock exchange was published.
In April, at least four months after the launch, the product’s beta version was launched. January was the largest month for NFTs ever, with a total monthly trading volume of more than $ 17.1 billion. This is more trading than has been done in total since Coinbase NFT’s debut.
While interest in NFTs was declining, Coinbase decided to limit access to the platform’s debut to a select group of waiting list customers, which could have hurt the platform’s chances of being adopted. Before its introduction, the site had about four million people waiting in line to test it out, but as of today, over three months later, it has only seen a total of 8,668 users.
Although it debuted five years before Binance, the largest cryptocurrency exchange in history, and seven years before its growing close rival FTX, Coinbase gradually lost market share and industry significance.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge of blockchain helps him provide a unique perspective to his writing
