The most popular NFT marketplaces in 2023

NFTs have reached the mainstream and have developed at record speed into an asset class that dwarfs the returns of many cryptocurrencies. At the heart of this digital revolution are NFT marketplaces, which have sprouted up like mushrooms in recent months. But what exactly are the advantages and disadvantages of these exchanges and which will be the most popular NFT marketplaces in 2023?

Suppliers and interested parties meet on the young marketplaces and trade their favorite digital items. The items range from digital pieces of land and works of art to memberships and virtual game items. No wonder that such a colorful offering meets with the approval of users.

In contrast to the unit of a cryptocurrency, which is exchangeable, an NFT represents a unique proof of ownership and can therefore always be assigned to a single owner. In this way, the new technology enables many unprecedented use cases and business opportunities.

The digital certificates of ownership are traded on various exchanges. It is possible to divide the most popular NFT marketplaces into different categories:

1. Classic NFT marketplaces (Opensea, X2Y2 and LooksRare)
2. Alternative Layer 1 marketplaces (Magic Eden, Binance, OBJKT)
3. Automated market makers and aggregators (SudoSwap, Gem, Genie)

Attention: When buying and selling NFTs, tax aspects should definitely be taken into account. Find out in advance to avoid any unpleasant surprises. For automated tax reports and NFT portfolio tracking there is
CoinTracking
.

1. opensea is the market leader, but the competition never sleeps

In the area of traditional stock exchanges, one project in particular has attracted attention in recent years: Opensea. The company was founded in New York in 2017 and now employs over 400 people. On Opensea, users can buy NFTs, sell them at auction or offer them for direct sale.

The exchange was at the center of the last NFT market cycle and recorded a record volume of well over 3.5 billion US dollars in August 2021. Celebrities such as Paris Hilton, Snoop Dogg, Eminem, Steph Curry and Gary Vaynerchuck have already been active here. Even though Opensea is the undisputed number one in the NFT landscape, some interesting and direct competitors have emerged for the NFT giant over the past year. Opensea’s main direct competitors are X2Y2 and LooksRare should be mentioned.

They work very similarly to Opensea in principle, but do not have the same number of users or listings. For many, however, it can still be worthwhile to choose one of the two exchanges over the Opensea exchange.

This is mainly due to the fact that the two crypto-native projects have their own token, giving their users many advantages. In addition to lower fees, they can receive additional rewards for NFT trading and also stake the native token (staking can also be recorded via CoinTracking).

2. the most popular NFT marketplaces in 2023: Alternative blockchains

Opensea started on the Ethereum blockchain and now supports four blockchains (Solana, Klaytn, Tezos and Ethereum). It’s exactly the opposite with Magic Eden. The NFT marketplace with integrated Launchpad started on the Solana blockchain and expanded the business area to Ethereum.

The Solana-based exchange established itself as the most popular NFT marketplace 2023 of an alternative layer 1 blockchain. These score points above all due to lower transaction fees and times and thus appeal to an audience that shies away from Ethereum due to a high price threshold. Blockchains such as Solana, the Binance Smart Chain with its NFT exchange and Cardano are convincing here.

However, the various blockchains are not only preferable because of their low price point. Rather, special products can be found on them that cannot be found on Ethereum – niches are forming. In this way, different blockchains are of interest to different target audiences.

Tezos is especially popular among generative art enthusiasts and many famous NFT artists on the Ethereum blockchain are releasing more favorable works through marketplaces like
OBJKT
.

Immutable X is a different story: This project focuses on blockchain gaming and has already formed partnerships with well-known gaming companies in the past.

Many different projects have their own blockchain with an NFT marketplace. Another example: Axie Infinity, the Ronin blockchain and the integrated Axie marketplace.

CoinTracking supports the automatic import of over 200 blockchains. Click here to register.

3 NFT exchanges 2.0: Automated market makers and aggregators

All the exchanges presented so far are similar in principle to a classic marketplace. In this respect, they work in a similar way to Ebay or Etsy. Recently, however, some NFT marketplaces based on other technologies have been launched.

SudoSwap in particular fought its way to the top of the most popular alternative NFT marketplaces in 2023. The revolutionary technology: The pricing of NFTs is based on an automated market maker (AMM). Liquidity providers provide Ethereum and NFTs in pools and thus contribute to price formation.

These liquidity pools allow for higher liquidity for NFT collections and a trading experience similar to a decentralized exchange (DEX). No wonder Uniswap announced the integration of SudoAMM. Another (controversial) advantage: SudoSwap is the most cost-effective exchange, as it completely dispenses with license fees for artists.

Ultimately, there are NFT aggregators, similar to the DeFi (Decentralized Finance) sector. They collect NFT listings from all marketplaces and allow you to buy multiple NFTs in one transaction. Thanks to optimized smart contracts, you save on gas fees compared to conventional NFT exchanges. The leading aggregators are
Gem
and Genie.

However, a major problem with the most popular NFT marketplaces in 2023 is that the young exchanges do not offer any tools or assistance in terms of NFT portfolio tracking and NFT tax reporting. As if dealing with new technologies, various blockchains and explorers were not enough, they leave a lot to be desired in these areas.

CoinTracking: NFT portfolio tracking and NFT tax reporting

CoinTracking has existed since 2013 and has since established itself as the market leader in crypto portfolio and tax tools. Everything is possible here, from tracking your performance and visualizing the portfolio to a fully-fledged tax report. CoinTracking supports the automatic import of over 110 exchanges, more than 200 blockchains and 9 crypto wallets.

From registration to NFT portfolio tracking or a complete tax report, it only takes a few minutes with CoinTracking. The tax reports automatically adapt to the tax laws of your country, making it easy for you to create individual tax reports.

Whether trading NFTs or cryptocurrencies, yield farming, providing liquidity or staking – the app records all conceivable transactions and calculates and visualizes your realized and unrealized profits. You can choose between 12 different accounting methods. These include FIFO, LIFO, HMRC, ACB and more.

Ultimately, CoinTracking offers you a selection of over 25 reports and services. Do you want to know which assets are already tax-exempt due to the holding period, analyze your trading fees or find out the number of trades you have made? None of this is a problem with CoinTracking.

If that’s not enough, there’s the CoinTracking Full Service. Here, experts and qualified tax consultants will advise you and offer you professional support in preparing complete and correct tax reports for your crypto or NFT portfolio.

Learn how to import your NFT trades into CoinTracking:

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Disclaimer: All information provided above is for informational purposes only and should not be considered professional investment, legal or tax advice. You should do your own research or consult a professional financial advisor when investing.