Understanding the cost of creating an NFT for the first time is quite complicated.
Many companies and entrepreneurs are looking to create non-fungible token (NFT) marketplaces—decentralized platforms where users can buy, sell, and trade unique digital assets in exchange for cryptocurrency or other valuable items.
Different factors are considered while creating an NFT, such as renting or buying equipment, warehouse space, fulfillment partnerships, shipping cost, distribution channels, backend integrations, inventory management systems, etc.
For those who have decided they want to build an NFT marketplace, the question arises: How much does it cost to create one?
In this post, we will go through some of the most popular NFT marketplaces available on the market and break down the estimated costs for the variables in NFT.
Non-Fungible Tokens (NFTs): An Overview
Non-Fungible Tokens (NFTs) are one of the most compelling use cases of blockchain technology today, and this has led to increased interest in the crypto space from individuals and companies alike. However, there are many questions about NFTs and how they will work.
The price of creating an NFT marketplace depends on the type of platform that you’re making, what features you decide to include, and how technical your developers are.
As a rough estimate, you can expect to pay around $50,000 to $200,000 to develop your NFT marketplace from scratch. If you’re willing to buy an existing NFT marketplace instead, then be prepared to spend anywhere from $20,000 to $300,000, depending on its features and the number of assets it allows users to create and transfer.
What Should You Know Before Starting to Build an NFT Marketplace?
You need to know certain things before you set off on your plans to build an NFT marketplace. Let’s explore each one by one.
Non-Fungible Token Standards
Standards drive NFTs.
The standards assure you that the asset will function in a specific way and offer step-by-step guidance to interacting with the basic functionalities of a particular purchase.
NFTs are commonly created using two standards:
ERC721: The ERC721 token standard is the most widely used standard for non-fungible tokens representing any type of asset worldwide. With ERC721 tokens, you can create scarcity, track ownership, and even ensure your digital collectibles are tradeable.
ERC1155: Ethereum Request for Comments 1155 is a standard for non-fungible tokens that enables developers to create games, collectibles, and other products with unique identifying properties. The cost of developing a new game or collectible can vary depending on the complexity and uniqueness of your idea.
In the NFT marketplace, there is a concept known as ‘ownerOf,’ which allows the search for the owner of a particular NFT. For example, when we look at the owners of NFT 212022 in an NFT’s smart contract, we can see that token 212022 belongs to ABC. Such information can be found on NFT marketplaces like OpenSea.
Now the question arises: how does OpenSea know what 212022 is and its specific properties?
In such situations, metadata comes into play. A token number or ID’s metadata provides detailed descriptions, pictures, or other features.
Working on NFT Marketplace
A simple set of steps on how an NFT marketplace works involve the following steps.
- Firstly, users must register with an NFT platform.
- Setting up a crypto wallet on the platform to store the non-fungible tokens and digital currency comes next.
- Then, the users build an NFT and set the auction’s settings accordingly.
- The collection is now up for sale.
- The platform of choice then moderates the materials.
- The non-fungible tokens then show up on the auction list for purchase.
- The purchasers make the bids in the auction.
- When the auction is over, sellers get informed about the highest bids from the buyers.
Legal Formalities for Creating NFT Marketplace
To create an NFT marketplace, many legal documents must be prepared.
- Terms of service
- Community standards
- Formation of company
- Details of IP consideration
Cost of Developing the NFT Marketplace
Developing a marketplace for non-fungible tokens is relatively expensive, but the benefits can be immense. The cost of developing a marketplace for these assets will depend on the scope of your project, with more complex projects costing more.
When creating a marketplace for non-fungible tokens, you must consider how much time and money you want to put into the project upfront. Keep in mind that building a thriving marketplace requires ongoing work to grow and maintain it over time.
Determining the total cost to build an NFT marketplace is challenging to ascertain as it can depend on several variables, including:
- Third-party API integration
- Developers’ cost
- Level of customization
- Tech stack
- The total number of features included
- Total time is taken for development
Let’s have a brief breakdown of the pricing structure of market factors considered for the NFT marketplace.
|Author Panel||$5085 – $15.840|
|Authorization and Security||$3285 – $8640|
|Buyer Panel||$3045 – $7680|
|Ethereum Incorporation||$4005 – $11,520|
|Home Page||$3645 – $10,080|
|Inventory Management||$2385 – $5040|
|NFT management||$4005 – $11,520|
|Notifications||$2085 – $3840|
|Payments||$2385 – $5040|
|Product Page||$2385 – $5040|
|Reviews & Ratings||$2565 – $5760|
|Search and Filters||$4005 – $11,520|
|Shopping Cart||$2565 – $5760|
|UX/UI Development||$2395 – $5040|
|User Profiles||$2385 – $5040|
|Total||$50,000 – $116,040|
Top NFT Marketplaces in 2022
Here are 5 NFT marketplaces you should check out in 2022!
OpenSea, the first and best NFT marketplace in the world, offers digital collectors a variety of alternatives, including JPGs and GIFs. Art, domain names, music, photography, sports, trading cards, and utility are a few of the several NFT categories it offers.
Many customers place it at the top of their priority lists because of its wide range of blockchain alternatives and strict security.
OpenSea is a user-friendly experience for new users, allowing anyone to create a profile and start browsing non-fungible tokens immediately. Additionally, you can even make them from within the OpenSea interface.
For every transaction on the site, you’ll have to pay 2.5%. You must also pay a fee for processing NFTs through Ethereum. Gas fees are paid to the miners participating in the transaction processing.
One way to avoid the fee is to buy and sell NFTs with Polygon, but make sure the items of interest have the Polygon logo on them.
OpenSea marketplace is a solid choice for beginners who want a straightforward marketplace with plenty of options for NFTs.
The Rarible is a popular marketplace that allows users to trade art, collectibles, video game assets, and NFTs. You can use Ethereum, Flow, and Tezos to buy and sell.
Rarible charges 2.5% flat, plus gas fees, on every transaction. Plus, you can use your credit card to buy non-fungible tokens, allowing transactions in traditional currencies.
In 2021, Rarible and Adobe announced their partnership to verify and protect metadata for digital content, including NFTs. However, the decentralized mindset is still maintained at the same time.
In 2021, Binance, one of the largest cryptocurrency exchanges, will be connected with the NFT (Non-Fungible Token) marketplace.
Unlike other major digital asset trading platforms, Binance NFT focuses on artwork, gaming items, and collectibles.
Binance NFT is known for its very low trading fees. Only 1% is deducted from each trade.
Binance supports the most commonly traded cryptocurrencies and provides a wallet for traders to store their assets. The exchange also offers customer service and a facility to transact using cryptocurrencies.
Nifty is an open, cross-chain protocol for creating and trading non-fungible tokens on the blockchain. It enables one token (e.g., a game character) to be traded with another (e.g., a scarce digital collectible) without requiring centralized trading parties or transaction fees. This provides an infrastructure for a decentralized economy where players can buy, sell, and trade digital assets like they use fiat currency today.
SuperRare is a blockchain-based digital collectibles marketplace. SuperRare’s mission is to create the world’s first decentralized market of cross-game items, which are virtual assets that exist across multiple games and can be used by players within these games.
SuperRare aims to provide users with a secure way of trading their digital collectibles without fear of fraud or theft.
In addition to security, another benefit of using SuperRare will be simplifying managing your collections and items. If you want to buy an item on SuperRare but don’t have time to go through the complicated process of exchanging your cryptocurrencies for SuperRare tokens before making a purchase, don’t worry! They offer instant purchases that allow buyers to purchase any item as soon as they see it while waiting for their crypto deposits.
NFT marketplaces are an excellent way for creatives to get their work out there and for consumers to find new items. However, setting up a business can take time, effort, and money.
Along with the total cost estimate for developing an NFT marketplace, we’ve compiled a list of five marketplaces that could prove helpful for you – some for buying and others for selling. These are all well-established platforms with plenty of traffic from buyers and sellers alike.
You can also contact the cryptocurrency development company for a detailed overview of NFT marketplace development costs in 2022.