Why Coinbase’s NFT Marketplace Attracted Less Than 150 Users On Its First Day Of Launch?

The newly launched NFT marketplace of Coinbase, Coinbase NFT, has so far been quite unsuccessful in attracting users.

According to data from Dune Analytics, the marketplace’s meta went live yesterday but only attracted 150 new users to sign up for its platform, reaching the total number of users on Coinbase NFT to 1,112 as of Wednesday evening. The marketplace fosters around 1,192 total users at the moment.

According to Dune, on its first day, Coinbase NFT saw only 150 transactions totaling about $75,000 of Ethereum (ETH) traded, whose cost is less than the price of one Bored Ape.

1/ I haven’t sold a share of Coinbase but will sell all my shares if the company doesn’t make a strong move in NFTs in the next year. The current NFT product is not it…
— Nick Tomaino (@NTmoney) May 4, 2022

OpenSea is the leading NFT marketplace in the market. It is recorded to generate billions of dollars worth of trading volume. Yesterday, the leading NFT marketplace witnessed $177.2 million of ETH traded on its platform, and as per the data from Dune, it has surpassed the mark of 1.65 million total users since launching.

There could be various reasons that Coinbase NFT is failing to attract NFT collectors. High competition is one of them as Marketplaces such as SuperRare, LooksRare, Foundation, NiftyGateway, and Rarible are ruling the small markets by covering niches.

In addition, there’s more competition coming. On Wednesday, Kraken announced that the Kraken NFT, its marketplace, is open now. The marketplace would charge zero gas fees through custodied trading and is scheduled to launch in a few months.

1/ I haven’t sold a share of Coinbase but will sell all my shares if the company doesn’t make a strong move in NFTs in the next year. The current NFT product is not it…
— Nick Tomaino (@NTmoney) May 4, 2022

There are no such financial benefits that Coinbase is offering except that it is charging no trading fees for a limited period (users still need to pay gas fees).

The timing of Coinbase’s NFT marketplace launch could be an issue as the crypto market is showing bearing trends. The second leading cryptocurrency, Ethereum, is down by around 44% from its ATH of over $4,800 in November.

Meanwhile, monthly NFT sales have also plummeted by 92% since their peak in September.

coinbase NFT is pretty underwhelming but keep in mind that this was always about attracting newbies who have no exposure to the space at all
power users complaining about missing features is pretty irrelevant to whether this has an impact on the market or not
— Giancarlo (@GiancarloChaux) April 20, 2022

High-profile customer-service issues are potentially behind the turbulence-filled launch of Coinbase NFT. CTO of Nike’s Web3 brand RTFKT Studios, Samuel Cardillo, says for absolutely no reason other than that he got ETH from sold NFTs, he has been blocked from Coinbase NFT.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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Source: https://www.thecoinrepublic.com/2022/05/06/why-coinbases-nft-marketplace-attracted-less-than-150-users-on-its-first-day-of-launch/