An NFT marketplace is a platform where non-fungible tokens can be bought, sold, and minted (created). Like a traditional art auction house or collectibles market, NFT marketplaces match buyers and sellers, facilitate transactions, and typically charge a commission on each sale. However, NFT marketplaces operate on-chain: every transaction is recorded on a blockchain, ownership is provably verifiable, and creators can embed royalty mechanisms that automatically pay them a percentage on every secondary sale — a fundamentally new model for creator economics impossible in traditional markets.
Major NFT marketplaces by blockchain: Ethereum — OpenSea (the original dominant marketplace), Blur (now the leading platform by volume, targeting professional traders with zero fees and token incentives), LooksRare, and Rarible; Solana — Magic Eden (dominant Solana marketplace, now multi-chain), Tensor (professional trader-focused with advanced analytics); Bitcoin — Magic Eden and Ordinals Wallet for Bitcoin Ordinals NFTs; Polygon — OpenSea Polygon. Key metrics traders watch: floor price (cheapest listed NFT in a collection), trading volume (daily/weekly sales), number of unique holders (distribution measure), and listed/circulating ratio (lower percentage listed = less selling pressure). The NFT market experienced an explosive bull run in 2021–2022 (generating $25B+ in annual sales) followed by a steep decline, making timing and collection quality selection critical skills.
Example: A trader buys a Bored Ape NFT at a 0.5 ETH floor on OpenSea in mid-2021. At the January 2022 peak, the floor hits 100 ETH. They list and sell for 85 ETH — a 170x return, with 2.5% commission to OpenSea and 2.5% royalty to the creators.
Learn more: Blur — NFT Marketplace
