- In the three months since its launch, Coinbase NFT has been unable to gain any significant traction.
- The NFT marketplace has done about $37,000 in average daily trading volume since its launch on April 20. This is roughly 2,000 times less than its biggest rival, OpenSea.
- Coinbase NFT has only attracted a total of 8,668 users during the same time frame.
Even worse than its sluggish stock, Coinbase has one product: its NFT marketplace.
NFT Coinbase Fails
Coinbase’s NFT platform is proving to be a total failure after three months.
The launch of Coinbase NFT, a social marketplace for non-fungible tokens, appears to have been completely botched by the biggest cryptocurrency exchange in the United States and one of the oldest centralized marketplaces in the sector.
Since its launch on April 20, Coinbase NFT has only seen a total trading volume of about $2.9 million, putting its average daily volume at about $37,000, according to open-source cryptocurrency data provider Dune. To put that into perspective, the largest NFT market in the industry, OpenSea, saw trading volume of more than $5.9 billion during the same time period. The trading volume for LooksRare, which debuted soon after the NFT market peaked in January, is estimated to be $2.53 billion. Only 6.1 ETH, or about $7,200, worth of trading volume was seen over the course of the previous 24 hours on Coinbase NFT.
Although the precise causes of Coinbase’s apparent failure are difficult to determine, the platform’s launch gate, highlighting dubious NFT projects like MekaVerse (a once-hyped collection that was accused of rigging its drop and ultimately tanked), and arriving months late to the NFT bull cycle (and four months after it planned to launch) did not help.
In an effort to stand out from its rivals, Coinbase positioned itself as the “Web3 social marketplace for NFTs” when it first launched its NFT marketplace. But it seems that nobody cared because the product came too late. The NFT market was already well on its way down to reach the same trading volume it had before the bull run in NFTs even started by the time the exchange released the product’s beta version in April—at least four months later than promised.
To date, January saw the highest monthly trading volume for NFTs, surpassing $17.1 billion. That exceeds the total trading volume that has been noted since the launch of Coinbase NFT. Coinbase decided to restrict access to the platform’s launch to a select group of waitlisted users, which probably hurt the platform’s adoption prospects at a time when interest in NFTs was in freefall. The platform had approximately four million users lined up to use it prior to launch, but as of right now, only 8,668 people have signed up overall.
Although it was established five full years before the current market leader in cryptocurrency exchanges, Binance, and seven years before its quickly encroaching rival, FTX, Coinbase has gradually lost market share and relevance in the cryptocurrency space. The exchange’s listing on Nasdaq in April 2021 was hailed as a “watershed moment” for the cryptocurrency industry, but since then, its stock has fallen precipitously amid a precarious macroeconomic climate, trading about 84 percent below its high of $51.71. The company’s disastrous launch of its NFT marketplace “for social engagement” only serves to accelerate its decline, costing millions of dollars with little to show for it.