Key Takeaways
- Coinbase states the latest decision will allow its developers to devote more time to other features of its product.
- Coinbase NFT’s all-time trading volume stands at 4,454 ether (ETH), or nearly $7 million.
Crypto exchange Coinbase’s NFT Marketplace announced that it is “pausing” future NFT drops. “We are pausing creator Drops on the NFT marketplace to focus on other features and tools that creators have asked for,” Coinbase NFT’s Tweet reads.
The marketplace further added that the latest decision would allow its developers to devote more time to other features of its product. “We believe that ultimately these changes will bring increased focus and efficiency to the Coinbase NFT team’s ability to build an enduring product that best serves the community in the long-term,” a Coinbase spokesperson said.
On Wednesday, Coinbase NFT partner Jessica Yatrofsky announced on Twitter that her upcoming NFT collection would no longer drop on Coinbase NFT, adding had been “privately informed that the marketplace was shutting down.” Coinbase NFT was quick to respond to the tweet reinstating that Coinbase NFT will only halt future NFT drops and will not be closing its marketplace completely.
The latest development comes amid a report that Coinbase NFT has been failing to attract users and is struggling to sustain a small user base. According to blockchain analytics firm Dune, when the Coinbase NFT marketplace was first opened in April 2022, only 150 new users made a trade on the platform. According to Dune data, the total number of transactions on Coinbase NFT on its first day open to the public amounted to approximately $75,000 of Ethereum (ETH) traded.
The numbers have not spiked in recent months. As per the latest Dune Analytics data, Coinbase NFT’s all-time trading volume stands at a depressing 4,454 ether (ETH), or nearly $7 million. By comparison, the behemoth OpenSea the world’s largest NFT Marketplace in January, brought in 306,645 ETH in trading volume, about $483 million.
Increasing competition in the NFT marketplace is cited as one of the main reasons for Coinbae NFT’s downfalls.NFT marketplaces, including LooksRare, Rarible, Foundation, NiftyGateway, and SuperRare, filling niches for smaller markets, have also not worked in favor of Coinbase NFT’s dreams.
