AMZN: Amazon’s Involvement Could Give NFTs a Much Needed Endorsement
- Amazon has announced that it is launching its own NFT marketplace next month.
- Experts in the space believe the involvement of major companies helps ensure the longevity of the industry.
- The market has already been shaken up by Blur – a new NFT marketplace threatening Opensea’s dominance.
The NFT space has been in trouble for some time now. After an explosion of hype caused millions of dollars to pour into the space near the end of 2021(partly thanks to collections such as BAYC and CryptoPunks), its volumes struggled to maintain their previous highs. As of last month, Ethereum NFT trading volumes are down by 70% from their all-time highs of $5.35bn over January 2022. However, with Amazon hopping on board to the space – it could be what the industry needs to start making its way back up to its previous highs.
What happened?
Online-retail behemoth Amazon has announced that it plans to launch its own digital asset marketplace sometime in April, which will also support NFTs tied to physical assets. Amazon has been exploring the possibility of offering NFTs for the best part of a year, and many believe that Amazon’s involvement could go a long way in restoring trust in the NFT industry. Some companies such as Starbucks and Reddit have already been doing so through their NFT-based rewards programs.
Big changes
Amazon’s involvement would be another major development for the space, after rising-star marketplace, Blur, blew Opensea (the previous leader in NFT marketplaces) out of the water by trading volume. Last month, Opensea only facilitated $386m in NFT trading volume while Blur racked up more than $1.1bn – attracting traders with its appealing rewards program. However, with Meta just announcing that it’s abandoning plans to integrate NFTs into its social media app, major tech companies are at odds on whether the NFT space can be seen to have a future.