- The NFT market is growing, but it remains highly fragmented and unpredictable.
- Reportedly, Amazon may add 15 collections in a new market from April 24.
- High-end NFT retain value, but don’t reflect the growth of low-cost Web3 ownership.
One of the main hopes for Web3 is that it would manage to achieve wider adoption, beyond the novelty of NFT. This time, item ownership would become the norm, adding to Web2 resources. However, the initial hype and overpriced items are giving ways to more flexible ownership with no aggressive sales.
Now, reports have surfaced on the possibility of an Amazon NFT market, potentially launching in a month.
For now, there are no details on the type of NFT to be included in that market. The talk of Amazon joining the space follows an earlier attempt by Coinbase. The goal of Coinbase was to include so-called blue chip NFT and grant exclusive access. For now, the Coinbase market has been relatively inactive.
NFT trading is highly fragmented, and there are many ways to drive traffic. For some game projects, most of the activity remains internal or tied to the community. For other large-scale collections, there is a more open market, especially for Punks and Apes.
Amazon is already tied to the usage of blockchain and NFT, mostly via the usage of AWS for nodes and other tasks.
Which Collections Will Amazon Add
So far, rumors are for 15 collections making their debut at the end of April. The marketplace may be highly curated, unlike free markets with a lower barrier to entry. Expensive collections that even now have a high floor price are seen as more secure compared to new mints.
Rough projections see growth in the NFT market in 2023, with up to $3.5B in revenues. For now, the market is made up of multiple niches, so there is no guarantee of the success of Amazon.
However, there are already tools to onboard new users and acquire NFT through fiat. Other corporations like Starbucks have built their own collection of NFT in the form of bonus stickers. For now, bigger corporations remain cautious, and the main avenue of Web2 to Web3 are small to medium teams and startups, mostly tied to the gaming space.