The Web3 world has been evolving at stupendous rates, particularly in the advent of the 2020s. With expectations and projections for the future being high in the bright sky, there have been several models that could power these dreams. It’s 2023 already, and you might well be missing out on the NFT business space if you haven’t heard of the NFT aggregator business model. The venture option has been soaring high since it became popular with a few acquisitions last year. We give here a comprehensive comparison between NFT aggregators and NFT marketplaces from a business perspective with expert insights.
NFT Aggregator Business: An Introduction
An NFT aggregator business is mainly a platform that displays price details of NFT collections collected across various marketplaces. The application also permits bulk purchasing of NFT items in a single transaction, adding to its novel nature. It also provides other analytical details on collections, helping buyers to make informed decisions.
Today there are numerous aggregators in existence, with Gem, Genie, CoralCube, Orion, and Rarible occupying the top positions. Each of these platforms explores various novel aspects that could be integrated into the model since it is still in its infancy, leaving scope for newer features to have a place.
NFT Marketplace Business: An Overview
The NFT marketplace is a business model where non-fungible token-backed products can be minted and traded. It can be based on both horizontal and vertical commerce models supporting generic and niche NFT items. The model has been around for nearly a decade, although it shot up to fame during the 2021 NFT boom.
These platforms can sell NFTs of almost everything digital and physical using the power of blockchain-based smart contracts. Such marketplaces’ open nature allows anyone and everyone to become a collector and seller. Also, creators can have extra benefits such as royalty commissions and other opportunities to earn passive income.
Aggregators Vs. Marketplaces: The Similarities
- The NFT marketplace and NFT aggregator business models are similar in some aspects, which we will see below:
- Both NFT aggregators and marketplaces help sell NFT products in some way or the other.
- Both can offer Lazy Minting, a feature where buyers will have to pay the gas fees for NFT items on behalf of the creators.
- These applications can contain all common elements involved in transactions, including crypto wallets and multiple payment gateways that can support various crypto and fiat tenders.
- They both can seamlessly work together with other NFT business models due to their supportive nature for trading.
Aggregators Vs. Marketplaces: The Differences
- There are many differences between aggregators and marketplaces involving NFTs that make them compete with each other. We will discuss some points of variations below:
- While NFT marketplaces help to create and trade NFTs, most aggregators serve as price-checking hubs for users to verify the costs of their favorite NFTs across the Web3 space.
- Some aggregators allow bulk purchasing of NFTs through a single transaction, while all NFT marketplaces enable users to purchase only one NFT per transaction.
- Price comparison is a unique element of NFT aggregators that are not present in marketplaces, as the latter are limited to NFTs within their selling spaces only.
Are Both of Them Interdependent?
When we speak of NFT aggregators anytime, there will be zero definitions of them without the mentions of marketplaces, although the converse has not quite panned out yet. But, aggregators might become crucial for marketplace platforms soon, given that the model could be altered to fit individual venture needs.
Both these platforms allow purchasing of NFT assets, and a mixture of these business models is always a possibility for an aspiring entrepreneur as the space is still nascent. Their capability to be present in other NFT venture domains, including NFT games and metaverses, seamlessly enables the growth of the Web3 space.
Revenue Models Common to Both
Both NFT aggregators and NFT marketplaces have been exquisite models in terms of revenue generation for underlying entrepreneurial minds. Let’s have a look at some prominent income streams these platforms offer.
- Platform Transaction Fees are common to both applications whenever a trade occurs. This is typically incurred as a percentage of the costs.
- Native Tokens help these platforms to maintain an active economic ecosystem around them while serving as steady income streams based on price growth.
- Advertisements (intrinsic and extrinsic) help businesses based on the aggregator and marketplace models to reap profits by promoting NFT collections based on user interests and general trends.
Which One Ultimately Wins?
Coming to the essential part of the debate we are in today, “NFT Aggregators Vs. NFT Marketplaces,” we could not determine a clear winner for some apparent reasons. Firstly, both the NFT marketplace and NFT aggregator business models are interdependent, meaning they need to coexist, not compete, to bring optimal success. Also, their working flows vary significantly, negating some degree of competition that might exist.
But, with NFT aggregators being one of the recently-evolving models, they have a slight edge in the Web3 business space concerning 2023 trends.
NFT Aggregators Could Become Better with Evolution from Innovative Minds, and It Might Be You!
How can Blockchain App Factory Aid You in Realizing Your New NFT Business?
At Blockchain App Factory, we strive to create innovative business solutions that assist entrepreneurs in realizing their dreams and reaping fortunes. Our excellence in creating platforms based on both the NFT marketplace and NFT aggregator business models enables our clients to target their preferred markets with ease. More reasons to opt for our services include:
- Proficient Blockchain Developers
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- 24 x 7 x 365 Technical and Non-technical Support
- On-time Delivery
- Competitive Pricing
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