Although it recently launched its much-anticipated NFT marketplace, Coinbase stock has fallen to fresh all-time lows.
The stock of Coinbase has dropped to new lows
Coinbase, the major US-based crypto exchange led by Brian Armstrong, is experiencing a hard spell in the stock markets, with its $COIN stock hitting fresh lows. $COIN hit a new all-time low during Friday’s afternoon trading session.
Coinbase recently announced the beta launch of its much-anticipated non-fungible token (NFT) marketplace, which allows users to purchase and trade non-fungible tokens. It should be remembered that the exchange first declared aspirations to join the NFT industry in October 2021, with over 1.5 million individuals signing up for the queue at the time.
On April 20th, 2022, Coinbase’s NFT marketplace became live in beta.
The Launch of the NFT Marketplace Fails to Raise $COIN
Coinbase’s stock trading with the $COIN ticker failed to generate any good momentum, despite the beta launch of its NFT marketplace. In reality, $COIN has constantly been making new lows since the beginning of April. $COIN fell to a new all-time low of $131.25 on Friday, only to settle at $131.52.
It’s also worth noting that, while anybody may use Coinbase’s NFT marketplace, it currently only permits a small number of customers to buy and sell Ethereum-based NFTs with ether payments (ETH). In the future, the crypto exchange plans to incorporate other blockchains and bring new features to increase user engagement on the site.
Most likely, blockchains like Solana, Near, and Avalanche, which have a thriving NFT environment, will be the next to be supported by the Coinbase NFT marketplace.
According to John Todaro, a senior analyst at Needham & Company, the main question isn’t whether the NFT marketplace will prosper. In reality, it’s a question of whether it’ll be able to expand as NFT demand continues to rise to new highs.
According to Todaro, investors are now asking for ‘can you truly scale it, can you do volume, can you really compete with Open Sea?’ according to Todaro. Is this going to increase income, or is it just launch and then die out?
Coinbase faces stiff competition
While the NFT market is still a new phenomenon, it doesn’t imply there isn’t a lot of competition.
The FTX exchange debuted its NFT marketplace last year to a lot of fanfare. Check us this guide to learn how to mint NFTs on FTX safely.