Everything You Need to Know About NFT Aggregator Business & NFT Marketplace Business
We cannot deny the fact that the latest technological innovations have brought to our life making it easier and more convenient for us to do our day-to-day tasks.
Talking about the business sector, technology plays a great role in transforming how organizations work & helping them deliver enhanced customer experiences.
With new upgrades & innovations every year, we cannot ignore the growing demand for NFT business space that makes use of the NFT aggregator business model.
In this blog, we will give an overview to check out the comparison between NFT aggregators & NFT marketplaces from a business perspective & help you gain insights to build NFT marketplace effortlessly.
What is NFT Aggregator Business?
An NFT Aggregator business can be defined as a common platform that showcases a different types of NFT collections for sale collected from different marketplaces.
This also enables buyers to purchase bulk NFT items in one go. Apart from that, the app also offers analytical aspects of each NFT item which enables buyers to make informed decisions while making a purchase.
Though there are a huge number of aggregators present in the market today, some of the most popular ones are Gem, CoralCube, Orion, Rarible, etc. All of these platforms give an overview of various novel aspects that can be integrated into the model.
Since the use of the NFT aggregator business is still in its infancy phase, it offers the scope for newer features to have a place.
What is NFT Marketplace Business?
When we talk about the NFT marketplace, it is considered a business model where different products backed up by non-fungible tokens can be minted and traded.
This can be based on both horizontal and vertical commerce models with the support of generic and top-performing NFT items.
The evolution of such a model came into existence 10 years ago but it gained attention during the 2021 NFT boom.
With the help of blockchain-based smart contracts, these platforms can sell NFTs of anything- both digital and physical.
Thanks to the open nature of such marketplaces that allow one and all to become a collector or sellers.
This also enables creators to gain extra benefits like royalty commissions and unlock opportunities to earn passive income.
Also Read: How Blockchain Technology Accelerate the Growth and Development of Small Business?
What are the Common Aspects of Aggregators and Marketplaces?
Generally speaking, the two business models i.e., NFT marketplace and NFT aggregator have similarities in many aspects. Here are some of the points that are common for both-
- Both NFT business models deal with the sale of NFT products in one way or the other.
- Both have a Lazy Minting feature, which enables buyers to pay the gas fees for NFT items on behalf of the creators.
- Both of these apps can contain every common element involved in transactions, such as crypto wallets, multiple payment gateways, etc. that can manage various crypto and fiat tenders.
- Due to their supportive nature of trading, these apps can work easily with other NFT business models.
Major Differences between Aggregators & Marketplaces
After discussing the similarities between the two business models, it is now time to check out the differences between aggregators and marketplaces, which can be the biggest factor for them to compete with one another.
- The NFT marketplaces are known for creating & trading NFTs while most aggregators act as price-checking hubs for users to cross-check the costs of their best NFTs across the Web3 environment.
- Another difference between the two is that all NFT marketplaces allow users to buy only a single NFT per transaction while some aggregators allow the bulk purchase of different NFTs with a single transaction.
- One of the most unique elements that are present in NFT aggregators but not in marketplaces is price comparison. In the marketplace, it is limited to NFTs within their selling spaces only.
Interdependency & Common Revenue Models
If we ask if these business models are interdependent with one another, we can yes! Indeed, NFT aggregators will always have mentions of marketplaces.
However, aggregators can be crucial for marketplace platforms if the model can be altered to fit individual venture needs.
Both allow the purchase of NFT assets and the mixture of both models can bring immense benefits in the coming years.
Other NFT venture domains include NFT gaming, metaverse, etc. that enable the growth of Web3 space.
Talking about the common revenue models, both offer the best income streams-
- Native Tokens- both help to maintain an active economic ecosystem by serving as steady income streams on basis of price growth.
- Platform Transaction Fees- Common for both applications with every trade that occurs & is usually calculated as a percentage of the costs.
- Advertisements- Both can earn profits with the promotion of NFT collections based on user interests & general trends.
Also Read: How NFT Trends Will Influence The Market in 2023?
When we talk about the comparison between NFT Aggregators and NFT Marketplaces, it is hard to pick a clear winner as both have their pros and cons.
In addition to that, both of these business models are interdependent, which means they need to coexist together rather than compete to bring the best benefits or success.
However, the workflow between the two varies significantly leaving some space for competition. As NFT aggregators are considered one of the most evolving models, they have a slight edge in Web3 business space about 2023 latest trends.
Being a renowned NFT marketplace development services company, Clavax believes in building innovative business solutions that enable entrepreneurs in realizing their business ideas and attain benefits.
With the expertise to create platforms based on both NFT marketplace & NFT aggregator business models, we help every client across the globe to target their preferred markets with ease.
Connect with our expert NFT professionals to develop a world-class NFT business platform customized to your specific brand needs.