The vast majority of NFT volume happens on the Ethereum blockchain.
Take a look through the DappRadar top NFT marketplaces. It’s not a debate. But, the Ethereum network is not suited for small, single transactions that are the norm in NFT trading. Gas costs can be as much as the NFT itself, resulting in small profit margins for traders.
Those that are tired of this fee-albatross have shifted their volume to other blockchains. These other options typically offer little to zero fees and faster transaction times. While weekly and monthly volumes may not match that of the Ethereum Network, these blockchains and alternative NFT marketplaces are on the rise. Early investors are the ones that will benefit the most down the line. Let’s take a look at three blockchains and NFT marketplaces that offer interesting early marketplace alternatives.
Polygon Offers Scalable Ethereum
If you’re looking to take advantage of the volume magnet that is OpenSea, look no further than Polygon. Buying NFTs on Polygon allows users to use their ETH without the fees associated with it. According to the OpenSea official site, there are three outright advantages to Polygon NFTs:
- No Wallet Initialization Fees
- Gas-Free Transactions
- Free Minting of NFTs
These advantages are perfectly suited for GameFi/P2E items. But, let’s first look at how to buy these items.
In order to buy NFTs on the Polygon network, you first need to bridge their ETH to the network. This is a super easy process available directly on OpenSea. Just connect your wallet to the site, view your funds, and click “Bridge to Polygon.” In under 10 minutes, you should see Polygon Bridged Ether in your wallet! At this point, you can buy NFTs annotated by the purple Ethereum logo.
The vast majority of Polygon NFT volume takes place on OpenSea. As mentioned above, this network is set up for GameFi assets. No transaction fees, on a fast and secure network, and no fees for minting are the ideal setup for blockchain video games. When scrolling through the top collections on OpenSea, we can see that the majority of the volume flows through these assets on Polygon. Some to consider buying and participating in are:
Polygon is the number one L2 Ethereum solution. Start investing in NFTs on the network to expose yourself even further.
Flow Is for the Creators
Flow NFTs have become the bridge into the grander NFT world. When we look at the average sales price on DappRadar, we can see that it’s not even a comparison to other chains. It is a low average platform, meaning that transactions run in the hundred dollar range, not the thousands. Flow offers a chain specifically built to optimize NFT transactions. They offer low-cost, fast transactions on easy-to-use platforms.
View the attached 1-pager and read the thread below to learn more about the exciting ecosystem
p.s. bigger report coming soon 👀 pic.twitter.com/rnkR5MV398
— Flowverse 🌊 (@flowverse_) February 16, 2022
While a lot of volume flows through NBA Top Shot on this blockchain, there is an interesting caveat. NBA Top Shot NFTs are as close to an NFT as they can be without actually being an NFT. So close, in fact, the community calls them NFTs without blinking an eye when they really shouldn’t be called this. Allow me to explain.
When you buy and hold an NBA Top Shot moment, you cannot store them in non-custodial wallets. This means that the NFT is stored on a user account on the Top Shot website. While you do “own” the NFT, at the same time, you technically don’t. Your user account does. If Dapper Labs or the NBA decides to deactivate or suspend your user account for any reason, the NFTs held in that account are worthless. While they are ownable digital goods, they are not provably ownable digital goods tracked on-chain.
That’s not to say this is a bad product. To people just dipping their toes into the NFT space, this should not be a worry. NBA Top Shot and other Dapper Labs products are actually fantastic intros into the NFT space. But, as collectors get more entrenched in the space, true ownership over the assets you’re buying is much more attractive.
Flow doesn’t only offer Top Shot though. BloctoBay is another marketplace gaining steam in recent weeks. This marketplace has seen a 216% increase in volume over the last seven days, seeing USD $42 million in $FLOW switch hands. Top collections on this marketplace include:
Additionally, the $FLOW chain offers specialized marketplaces that cater to the most niche of interests. UFC Strike, Ballerz, and Sturdy.Exchange all see high volume on their exchanges. Look into FLOW NFTs for officially licensed items and a fantastic intro into a creator-friendly ecosystem!
Avalanche NFTs Are on the Rise
Finally, an interesting NFT marketplace on the rise is NFTrade and, specifically, their Avalanche NFT collections. NFTrade is a crosschain marketplace. When comparing the users and volume on each chain offered the last seven days:
- Ethereum $3.25k Volume (27 Users)
- BSC $178.09k Volume (1.94k Users)
- Polygon $5.52k Volume (530 Users)
- Avalanche $4.56M (8.75k)
We can see that NFTrade is predominantly an Avalanche NFT marketplace. And, to mention, that Avalanche volume is up 50.43% over the last week.
NFTrade offers similar benefits as most NFT marketplaces. Users can buy, sell, and swap their favorite NFTs from the chains and collections offered. But, NFTrade also offers collection token farming. This means that for eligible collections, instead of just holding the tokens they generate from staking in your wallet, you can further stake those. NFTrade pays out in a currency that allows users to buy NFTs on the platform. Instead of holding these tokens in your wallet waiting for them to rise in value, put them to work on NFTrade.
— AvaxNftStats🔺 (@AvaxNftStats) February 18, 2022
The top collections from AVAX to invest in, or keep an eye on, are:
Start collecting now and potentially stake your token rewards for even more rewards! Welcome to the beautiful world of Web3.
Pay attention to these NFT alternatives. While sometimes we get bogged down in the volume ETH presents, the gems are where people haven’t looked yet. While most are trying to find the next BAYC or Cool Cats on ETH, find the first to establish itself on one of these other blockchains.
NOTE: Remember always to do your research, make your own decisions, and invest in projects that interest you!
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