NFT trading has come a long way since the 2021 degening days on OpenSea. Back then, floor prices would skyrocket and crash to zero due to undercutting sellers or liquidity squeezes. Making a profit was challenging and unpredictable.
Traders in 2023 have a multitude of NFT trading tools at their fingertips, all of which work towards solving key issues of NFTs; liquidity and staking. Let’s take a look at some of the most popular NFT trading platforms.
Have you ever thought an NFT collection’s floor price was going to go down but didn’t know how to make money from your prediction? With nftperp, users can ‘long’ and ‘short’ NFT collection floor prices based on the WETH value. Some of the most popular NFT collections are listed on nftperp such as Milady Maker, Azuki, BAYC, Punks, Mutant Ape Yacht Club and Pudgy Penguins.
A benefit of using nftperp is if you want to ‘long’ a collection like BAYC, you don’t need to have enough capital to buy an entire NFT to have exposure to the collection. Instead you can pick a trading size you’re comfortable with and (hopefully) make money as the collection moons. Traders on nftperp can trade with leverage up to 10x (be sure to use care with leverage and only trade what you’re prepared to lose). Nftperp is currently in private beta.
Sudoswap has done wonders for improving NFT liquidity. Whilst NFT collection floor prices have soared, what hasn’t kept up is available liquidity, increasing financial risk for investors. In the days before SudoSwap, someone looking to sell an NFT quickly would list it below floor price on OpenSea and hope a buyer comes along soon so they can cash out.
Sudoswap reimagined the process for setting a floor price. Users can deposit their NFT in a Sudoswap pool and earn yield from the proceeds of sales of other NFTs in the pool. The floor price isn’t set by a seller undercutting the rest of the collection. Sometimes there are arbitrage opportunities due to differing prices on OpenSea and Sudoswap, allowing attentive traders an opportunity to make money.
NFTx is a place for buying, selling, swapping and staking NFTs. If you have an NFT in a collection but want to swap if for another with traits you prefer, you can do instantaneously that with NFTx for a small fee.
Holders of an NFT can also deposit their NFT into an NFTx.io pool and earn yield from other users buying and selling NFTs in the sale pool. NFT depositors to a pool receive a token for their NFT they can use to exchange for their NFT when they don’t want it in the pool anymore.
Whilst all of these NFT trading platforms have advanced the NFT ecosystem and ensured industry staying power, a perfect solution for NFT trading and liquidity still eludes us. What do you think are the greatest problems of NFT trading still to be solved?
Disclaimer: This is not financial advice. All advice in this blog is general in nature and does not take into account your individual situation. You should consult with a professional or do your own research before investing in cryptocurrency.