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Binance Ramping Up to Launch Own NFT Marketplace

Posted by
Robert Hoogendoorn

BSC getting ready for another attack on Ethereum

Binance has announced to launch the Binance NFT Marketplace in June, allowing users and creators to trade and sell digital assets. The marketplace will allow users to transact, mint, and sell with minimal fees, which will run on Binance Smart Chain. 

Binance is promising unique offerings and exclusive collaborations through their ‘premium event’ category. In this category, 90% of the revenue goes to the artists, and therefore 10% goes to Binance. In addition, the ‘trading market’ will allow all kinds of users to mint and sell NFTs. Here the company charges a 1% processing fee. Creators will have an automatic 1% royalty payment on subsequent trades. 

“Our aim is to provide the largest NFT trading platform in the world with the best minting, buying, and exchanging experience, by leveraging the fastest and cheapest solutions powered by Binance blockchain infrastructure and community,” said Helen Hai, Head of Binance NFT.

Binance taking over

Over the past 9 months, Binance has been making major moves in the world of decentralized finance. Their Binance Smart Chain has become a new breeding ground for DeFi protocols according to the latest DappRadar report. Here users can trade and swap tokens with very small fees, making these services accessible for users with smaller pockets.

On a daily basis, more than 105,000 wallets connect to the Binance Smart Chain. This makes it one of the leading blockchain protocols. If we look more specifically at the DeFi category, the strength of Binance Smart Chain is noticeable. Projects like Venus and Belt Finance handled more than $2 trillion in volume in the past 30 days. While PancakeSwap had 579,230 active wallets in the same period.

What will happen to the NFT market?

Having a marketplace with low transaction fees isn’t a guarantee for success. At the moment Atomic Hub on the Wax blockchain registered 298,870 active wallets in the past 30 days. In terms of wallets, this is the biggest marketplace. On the Ethereum blockchain, Rarible and OpenSea are leading with 44,000 and 29,000 active wallets respectively.

According to DappRadar data, the volume of Atomic Hub is far behind its Ethereum counterparts. Their users are responsible for $4,81 million in trading volume, mainly because the NFTs are simply a lot cheaper. When there are no transaction costs, NFTs can become cheap. It makes them for example usable in games.

However, OpenSea recorded $74,8 million in volume, while Foundation and Rarible follow with $68,9 million and $40,2 million respectively. Despite dealing with high gas fees on the Ethereum blockchain, these marketplaces still see more value being transacted. The NFTs traded on these platforms tend to sell at a higher price.

Based on this logic, Binance Smart Chain should find a middle ground between Wax and Ethereum. However, this also depends on the projects and artists they attract. Growth in the gaming ecosystem on Binance Smart Chain would also result in more trading activity.

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