Coinbase NFT Adds New Features While Struggling To Attract Traders

Bishal Kumar Chanda
04.07.2022

Touting an engagement-first approach, Coinbase continues to add more features to its 8-week-old NFT marketplace. However, the userbase still remains relatively small.

At the beginning of May, Coinbase launched the public beta of its new NFT marketplace. Since then, the cryptocurrency exchange’s NFT marketplace has rolled a number of updates. The updates include an NFT “Bulk Manage” feature, a “Liked” tab, an insights page, and a notification hub.

In addition, it has also added rarity filters, a “Following” feed, and time-delayed listings. Also, users can now connect up to 10 crypto wallets to a single Coinbase NFT account.

However, despite Coinbase holding off any fees “for a limited time,” traders haven’t substantially materialized.

According to Dune Analytics data, Coinbase NFT has had about 8,200 unique traders on the platform since its launch two months back. At the time of writing, the Coinbase NFT platform roughly had 21,000 transactions. As per Dune figures, it adds up to a total trading volume of roughly $2.9 million, or 1,468 ETH.

While those numbers might seem high, they aren’t when compared to other platforms. For instance, the leading NFT marketplace, OpenSea, had $15.6 million in total trading volume on Thursday alone. Moreover, OpenSea has 1.9 million registered users who have done at least one transaction on the site. 

Amid the broader crypto bear market, Coinbase has been laying off employees and rescinding job offers. However, Coinbase NFT’s development seems to be continuing. 

Can The Coinbase NFT Marketplace Take Off?

Meanwhile, Twitter users’ response to Coinbase’s new features was mixed. Some have expressed concerns regarding Coinbase allegedly selling user data, which the company had denied, while others argued that Coinbase has “failed” with its NFT marketplace launch.

But according to a Coinbase representative, Coinbase NFT is a “Web3 social marketplace,” so it shouldn’t be judged in terms of on-chain data alone. 

According to the company, Coinbase NFT is focused on building out its product right now and will add monetization later. “We do not focus solely on transaction numbers and volume,” added a Coinbase spokesperson. 

On its first-quarter earnings call in May, Coinbase CEO Brian Armstrong said that he was “really pleased” with the NFT marketplace’s success thus far. Additionally, he wanted to add support for more blockchains in the future. 

“We’re going to keep investing in it,” Armstrong added. 

But how much is Coinbase investing in the Coinbase NFT marketplace? President Emilie Choi said on the earnings call, “We allocate roughly 10% of our budget to longer-term bets such as the NFT marketplace.”

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