NFT (non-fungible token) market has been growing exponentially since its invention in 2015, and this trend seems to touch greater heights in the years ahead. It has offered many lucrative ways for investors to generate a higher ROI. According to Statista, around 60,000 NFTs are sold every day on Ethereum alone, and there are numerous other NFT platforms too. Some mentionable NFT platforms are Nifty Gateway, Zora, OpenSea, Rarible, SuperRare, Foundation, AtomicMarket, BakerySwap, KnownOrigin, Myth Market, and Async Art. Now, you can anticipate the selling rate of NFTs and the profits that investors can generate from their digital assets.
Indeed, NFT marketplaces are growing unexpectedly and are making a mark by generating hefty revenue. So, there is a high chance that launching an NFT marketplace will be your next big hit in 2023 provided that you get the best Ethereum dApps development services from a reliable company.
Still unsure how does NFT marketplace makes money? Here’s a look at some of the best ways that help market owners earn immense income.
5 Best Ways NFT Marketplace Generates Hefty Revenue
You may know how creators and collectors capitalize on NFTs but do you know how the NFT marketplace makes money? Different marketplaces have different strategies to reap the benefits. However, there are typically five ways that popular marketplaces follow to make a killing.
1. Transaction Fees
The primary method that almost all marketplaces use to make money is charging transaction fees. The NFT marketplaces set transaction fees themselves and thus the rules of application vary from platform to platform. For instance, some marketplace charge transaction fees to both buyer and seller while some charge to buyers only. However, the average amount for transaction fees is 2-5% of the final sale price of the NFT or digital assets. There are also gas fees charged by the Ethereum network. It is incurred to verify every transaction that takes place in the Ethereum blockchain.
2. Listing Fees
Some popular marketplaces also charge listing fees for minting, listing, removing, exchanging, or selling your non-fungible tokens. Having created any type of digital asset like a video, photo, music, artwork, etc. into an NFT marketplace, the users have to showcase them in the platform so that the potential buyers may bid on the same, and the seller can gain the profit. To list and sell digital assets, the marketplace platform charges listing fees from the respective seller.
NFT marketplaces often have their own cryptocurrency tokens, which are basically used to reward users for holding or transacting NFTs. The NFT marketplace contains a massive amount of tickets which they sell at the most favorable time to generate additional revenue. However, selling too much too quickly can decrease the value of their tokens, and thus the market owners should analyze the right approach to capitalize on tokens.
4. NFT T-Bond
NFT T-Bond is another effective way that helps NFT marketplaces generate revenue. It works similarly to a US Treasury Bond, and owners can resell them on supported secondary markets for other currencies like Bitcoin.
Royalties are another remarkable ways that help marketplaces generate revenue. The real artist or seller earns a specific percentage when secondary buyers resell the pre-bought NFTs, making the marketplace owner also earns a particular portion of the sale.
Now that you are well aware of how does NFT marketplace makes money and Ethereum dApp is the most popular platform, it is time to launch an NFT marketplace app. Turn to Ethereum dApps development services to do your project from scratch. An Ethereum dApps development company will help you extend your income model by building the finest NFT Marketplace platform.