NFTs, or non-fungible tokens, uniquely signify ownership of specific digital assets like artwork, collectibles, or virtual real estate. As the demand for NFTs rises, entrepreneurs and businesses consider entering the NFT space as a marketplace. A crucial decision they encounter is whether to develop an NFT marketplace from scratch or opt for a White-label NFT marketplace solution.
In this blog, we explore the NFT marketplace development and deeply compare developing an NFT marketplace from scratch and one using a White-label NFT marketplace solution.
What are the Growth and Future Trends of the NFT Market?
Anticipated to hit US$1,601.00 million in 2023, the NFT market’s projected revenue is poised for substantial growth. With an estimated annual growth rate during 2023-2027 of 18.55%, the overall revenue is forecasted to soar to US$3,162.00 million by 2027. In 2023, the average revenue per user is expected to be US$114.80.
Taking a global perspective, the United States is projected to lead in NFT market revenue, reaching an impressive US$781,900.00 thousand in 2023. Looking ahead, the number of users in the NFT market is expected to reach 19.31 million by 2027, with user penetration remaining steady at 0.2% in 2023 and 2027.
How to Develop an NFT Marketplace from Scratch?
Consider developing your NFT marketplace from scratch for unique customization or by White-labeling an existing one. Building from scratch, mainly using smart contracts over a blockchain, is recommended for a tailored NFT trading platform. Here’s a concise guide:
Identify niche: Choose a niche based on target audience and competition, such as artwork, video gaming assets, sports, or music.
Find a development company: Select a reputable NFT marketplace development company through platforms like Clutch or Goodfirms to handle the technical aspects.
Finalize features: Include must-have features (sign-up, user profile, settings, notifications) and consider adding extras like storefronts, listings, filters, chat, calendar, and wallet.
Choose monetization strategy: Decide on a monetization strategy that can have streams like listing fees, transaction fees, setup fees, bidding charges, and ad revenues.
UI/UX design: Focus on user-friendly design for a seamless experience. Align the design with branding, use a specific color scheme, and prioritize layout, visual hierarchy, and aesthetics.
Choose technology stack: Select a technology stack for front-end and back-end development, considering programming languages, IDE, SDK, frameworks, databases, search engines, blockchains, token standards, and smart contracts.
Test and deploy: Thoroughly test the marketplace for bugs before deployment to ensure a smooth user experience.
Promotions and feedback: Start promotions before launch, utilizing various marketing strategies. Gather user feedback post-launch to enhance the marketplace experience.
What Makes a Whitelabel NFT Marketplace a Superior Solution?
A White-label NFT marketplace serves as a ready-to-use platform that businesses or individuals can customize slightly, adding their unique touch when launching their own NFT platform. It can be tailored to suit their specific business needs.
Here is a list of reasons why opting for a White-label NFT marketplace might be a preferable choice:
Accelerated Tech Development
Building your NFT marketplace from scratch is a time-intensive process, often taking 3 to 12 months for development. In contrast, a White-label NFT marketplace can be deployed much more quickly, even with advanced functionalities.
Enhanced Feature Integration
Every marketplace has distinctive features that set it apart. While developing these features independently, utilizing a White-label solution simplifies the process, especially as many of these platforms are open source, allowing for the seamless incorporation of custom features.
Building your NFT marketplace from scratch can go up to costs exceeding $100,000, escalating further with added security layers and features. Choosing a Whitelabel solution is a more economical alternative, reducing costs significantly.
Pre-built Security Measures
Considering the uniqueness of an NFT, extra attention should be taken to determine its ownership. Developing security measures for an NFT marketplace is complex and requires meticulous attention. In contrast, a White-label NFT marketplace comes with built-in security features, minimizing the need for additional work and costly security audits.
Seamless Wallet Integration
Building an independent NFT marketplace necessitates a dedicated focus on wallet creation and integration services, adding complexity and cost. Opting for a White-label NFT marketplace streamlines this process by providing an integrated wallet, saving time and resources.
Cost Comparison for White-label Marketplace over Building from Scratch
A White-label NFT marketplace provides an affordable and adaptable solution for businesses venturing into the NFT arena. Development costs for a primary White-label NFT marketplace fall between $10,000 and $90,000. With such a development cost, it is considered a budget-friendly option compared to building from scratch, as starting from scratch can be both costly and time-intensive.
A White-label solution provides more advantages at a lower cost and allows businesses to customize the platform according to their specific requirements, facilitating a quicker platform launch. Even with 50,000+ active users, a well-developed White-label NFT marketplace can perform seamlessly.
When selecting a White-label NFT marketplace provider, it’s crucial to consider key features such as UI development, smart contract development, storage setup, scalability, and revenue and royalty management. The cost-effectiveness of White-label NFT marketplace software makes it accessible for startups and established entrepreneurs, offering a practical and efficient alternative to building from scratch.
Also read: 10 Ways to Use NFT to Grow Your Business
What are the NFT Marketplace App Features That Influence The Development Cost?
When developing an NFT marketplace, crucial factors influencing costs include essential features. You must choose a development company to ensure a user-friendly experience for file searches and a streamlined back-end transaction process. Here are a few must-have features for custom NFT marketplace development:
- Storefront: Storefront provides detailed information about articles, owners, bids, price history, etc. It acts as an engaging dashboard for customers.
- Advanced search functionality: Features like category tagging and management functionality allow users for easy collectible searches.
- Create listing: This feature allows sellers to create and add their NFT details to listings easily.
- Auction and buy: An essential feature incorporates an efficient buying system with bid amount, expiration date, and creating a watchlist for users to track their bid status.
- Wallet Integration: This feature enables users to send, receive, and store NFTs and cryptocurrencies seamlessly. You can integrate existing wallets or create a new wallet for your platform to improve the NFT marketplace experience.
- Instant notification: This feature utilizes push notifications and emails for real-time updates on collectible debuts, new tokens, and upcoming auctions. This helps to achieve a higher platform conversion rate for your NFT marketplace.
Beyond these essential features, other options like metaverse integration and multi-payment gateway integration are available. NFT marketplace development costs, based on features, may range from $5,000 to $50,000 and beyond, especially with third-party modules. Additional factors contribute to the final cost beyond the feature set.
What are the Monetization Strategies in NFT Marketplace Development?
To optimize revenue in NFT marketplace development, exploring various business models and monetization approaches is crucial. Here are the top four strategies adopted by segments within the NFT marketplace:
Transaction fees: Charging fees on transactions is a primary revenue stream for NFT marketplaces. This can include minting fees and transaction fees for each sale.
Listing: Tokenization processes may involve charging the product’s creator a fee. For instance, your platform can charge a small fee for users signing up to create listings on your platform.
Promotions: Implementing a promotion model involves placing special banners on your NFT platform for marketing purposes and earning revenue from associated brands. This provides a quick avenue for monetization through advertising.
Bidding: Auctions conducted on your NFT marketplace offer an additional avenue for monetization. Earnings can be generated from every auction as part of the platform fee for the owner.
To sum up, the decision between building from scratch and opting for a White-label solution depends on factors like budget, timeline, customization needs, and technical expertise.
When deciding how to develop your NFT marketplace, whether from scratch or using a White-label solution, carefully consider your unique business requirements, available resources, and long-term objectives.
Building your NFT marketplace from scratch offers the advantage of tailored features and scalability but requires a significant investment in time and technical expertise. In contrast, White-label solutions provide efficiency in both time and cost but may come with limitations on customization. Seeking guidance from experts or engaging a specialized development agency in NFT marketplace development can be beneficial in effectively navigating this decision-making process.