Coinbase NFT technique turns out to be a total failure

After three months, the NFT technique used by Coinbase has been shown 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 about $37,000, according to open-source cryptocurrency data provider Dune.

The launch of Coinbase NFT, a social marketplace for non-fungible tokens, has been fully stopped by Coinbase, the largest US-based cryptocurrency exchange and one of the oldest controlled marketplaces in the sector.

NFT failure

The trading volume for LuxRay, which began soon after dominating the NFT market in January, is close to $2.53 billion.

While it is impossible to pinpoint the precise causes of Coinbase’s apparent failure, the time to highlight dubious NFT initiatives like Makeover (the once-hyped archive that had been released) has been postponed months into the NFT bull cycle (and four months after it was 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 gaiting the platform’s debut didn’t help.

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 like nobody cared because the goods came too late. The NFT market was well on its approach to achieving the same trading volume it had before the NFT bull run started by the time the exchange was published.

April, at least four months after the promise, saw the release of the product beta version. January was the greatest month for NFTs ever, with a total monthly trading volume of more than $17.1 billion. This is more trading than has been done overall since Coinbase NFT’s debut.

While interest in NFTs was on the decline, Coinbase decided to restrict access to the platform’s debut to a select group of waitlisted customers, which may have harmed the platform’s chances of being adopted. Prior to its introduction, the site had approximately 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.

Even though 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 importance.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing