NFTs have only recently entered the crypto market, quickly taking the users’ attention as a lucrative investment type. Thus, even despite the ongoing crypto winter, NFTs enjoy relatively stable interest from traders and investors, with the 2023 revenue in the NFT segment projected at $1.6 billion.
The prospects for this fast-growing market sector are also favorable, with experts predicting its worth to exceed $122 billion by 2028, which equals a CAGR of 34%+ over 2023-2028. So, with these figures in mind, you might consider NFT-related projects right now as a highly profitable business idea with a decent ROI (that may climb way higher as soon as the crypto market revives). Here is an expert walkthrough of an NFT marketplace, showing how this project can benefit you and what to consider when building one.
What Is an NFT Marketplace?
Naturally, as the term suggests, an NFT marketplace is a platform that supports NFT minting, burning, and trading. This marketplace type differs from a traditional crypto trading exchange because it should possess the functionality for ERC 721/1155 tokens. Thus, a regular NFT marketplace should possess the following elements:
- An ability to sign up and log in for new and existing users.
- Linking a digital wallet to the user’s profile.
- Asset filtering and list creation.
- NFT minting.
- NFT sale arrangement on a fixed-price or auction principle.
NFT marketplaces are blockchain-based resources operating based on smart contract execution. Users who buy, sell, or create NFTs initiate smart contract generation.
How Does an NFT Marketplace Work?
As you might already understand, NFT marketplaces work as regular e-commerce platforms uniting buyers and sellers of NFT assets. Besides, many platforms have the minting functionality for artists, thus removing the need to import NFTs from external storage. An artist can register on the platform and create NFTs for sale right on it, using the marketplace’s capacity for minting.
Several types of NFT marketplaces emerged in response to user preferences and needs. At present, you can buy and sell NFTs at one of the four marketplace types:
- Curated. A curated NFT marketplace is an analog for a CEX; it means a central authority makes decisions about who can mint and sell NFTs on the platform and ensures transactions’ safety.
- Non-curated. This NFT marketplace type is similar to a DEX – a more decentralized platform open for anyone who wants to create and sell NFTs or buy some digital assets.
- Mass. Mass NFT marketplaces, just like a regular e-commerce marketplace, welcome all artists, and support all kinds of NFT styles and genres.
- Niche. A niche NFT marketplace is one with narrow specialization. For instance, it may specialize in works of art, music, or sports fan collectibles.
Features You Should Consider
Now that you’re considering an NFT marketplace development seriously, it’s vital to include important features distinguishing user-friendly, functional platforms from mediocre ones:
- NFT shop window. This is the most important element that makes your NFT marketplace usable and appealing. Organize a shopfront with proper regard to visual attention cues, make a modern layout, and present all NFT information, such as the asset’s owner, price, name, history of ownership, etc., in one convenient place.
- Filters. As your NFT marketplace grows, it may be crowded with tons of NFTs, and users may find it hard to locate the assets of their interest. Thus, it’s necessary to equip the platform with advanced search features, categories, and filters to make the search process a breeze.
- Trading functions. Users should be able to buy and sell NFTs.
- Account features. A user’s account should provide a convenient dashboard with the user’s key data, purchased and sold NFTs, and other performance stats.
- Reviews and NFT/artist rating. Product reviews and artist ratings can simplify the process of finding trending NFTs or building one’s way to the top of the marketplace’s lists.
- NFT wallet linking. Users should be able to withdraw the purchased NFTs to external wallets and add NFTs from those wallets for sale.
How to Build an NFT Marketplace Platform?
What does building an NFT marketplace entail? Here are the main steps you will need to go through on the path to your NFT project’s release.
- Choose the underlying technology. There are many blockchains today, each with its own pros and cons. Thus, you should choose your project’s base wisely, depending on your priorities and expectations.
- Think over the design. A stunning UX/UI design is a sure path to market success. Thus, you should invest time and effort in visualizing the project first.
- Start front-end and back-end development. These aspects are critical for your NFT marketplace’s creation, as they are the key building blocks of a functioning marketplace.
- Set up a token generator for NFT smart contracts. This functionality is the core of your NFT marketplace’s operations.
- Test the whole project. Testing is critical because it helps you remove bugs, improve UX, and protect user funds and data from hacks or theft.
NFT Marketplace Development Cost and Timelines
There’s no precise estimate, as regular NFTs range from $50,000 to $300,000+, depending on the country of your development team’s location, the number of features you want to introduce, and the project’s overall complexity. In terms of time, be ready to wait for 3-12 months for the project’s deployment. However, the timing can be reduced to 1.5 months if you choose white-label development.
Why Should You Invest in the NFT Marketplace?
As you can see from this review, the NFT market is growing quickly as NFTs get broader application and rise in popularity. Thus, you can never go wrong in building a secure, feature-rich NFT marketplace with a rich set of features. You have many ways to monetize this project, ranging from in-app ads to commissions from NFT minting and sales. Thus, a properly built NFT marketplace is sure to become a source of your stable business revenue.
Why Build a Custom NFT Marketplace with 4IRE?
Now, the most interesting part – working with a reliable companion on building your NFT marketplace. The 4IRE team is happy to help you bring this business idea to life. We have dozens of talented blockchain engineers on board who can deliver cutting-edge blockchain-based products meeting any business requirements. You can entrust 4IRE with NFT marketplace development from scratch or opt for a white-label development solution that saves money and time; in any case, you will get a safe, robust solution geared for convenient use and sustainable growth.