Coinbase NFT technique turns out to be a total failure

After three months, the NFT technique used by Coinbase turned out to be a complete failure.

Since its introduction on April 20, Coinbase NFT has seen just $2.9 million in trading volume, with an average daily volume of around $37,000, according to the open-source cryptocurrency data provider. Dunes.

The launch of Coinbase NFT, a social marketplace for non-fungible tokens, was completely halted by Coinbase, the largest US-based cryptocurrency exchange and one of the oldest regulated marketplaces in the industry.

NFT failure

LuxRay’s trading volume, which began shortly after dominating the NFT market in January, is close to $2.53 billion.

While it is impossible to identify the precise causes of Coinbase’s apparent failure, the timing of highlighting questionable NFT initiatives such as Makeover (the once-hyped archive that was released) has been postponed for months in the NFT bull cycle (and four months after it was should begin).

To put that into perspective, around $5.9 billion in trading volume was recorded over the same period on OpenC, the industry’s largest NFT platform. Eventually gave up after being accused of manipulating the fall, and making the platform debut didn’t help.

In an effort to set itself apart from its rivals, Coinbase positioned itself as the “Web3 Social Marketplace for NFTs” when it launched its NFT Marketplace. But it seems no one cared because the goods arrived too late. The NFT market was well on its way to reaching the same trading volume it had before the start of the NFT bull run at the time of the exchange’s release.

April, at least four months after the promise, saw the release of the beta version of the product. January was the biggest month ever for NFTs, with a total monthly trading volume of over $17.1 billion. That’s more trades than have been made overall since Coinbase NFT’s debut.

As interest in NFTs waned, Coinbase decided to restrict early access to the platform to a select group of waitlisted customers, which could have hurt the platform’s chances of adoption. . Prior to its introduction, the site had around four million people queuing to test it, but to date, more than three months later, it has only seen a total of 8,668 users.

Despite debuting five years before Binance, the largest cryptocurrency exchange in history, and seven years before its increasingly close rival FTX, Coinbase has steadily lost market share and revenue. the importance of the industry.

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