The increasing popularity in NFTs resulted in a positive start of the year for Rarible
The startup, allows users to buy and auction digital art. The company also has its own Rarible governance token, which allows users to make and vote on proposals around the platform's features and fees. It is one of the most used marketplaces by NFT collectors and artists, along with Opensea and SuperRare. The platform, which launched in early 2020, says it has processed more than $150 million in transactions in the last 12 months.The NFT market gained a lot of attention in the first quarter of this year as interest in cryptocurrencies grew, and the media also wrote about NFTs. The growing popularity was very positive for NFT marketplaces such as Rarible and led to more sales.
Rarible is partnering with Flow to lower the barrier to entry
Despite that the increasing popularity was a good thing for the marketplace, there were also problems. Because of Ethereum's popularity, the resultant high transaction costs (gas) meant that the minimum cost to mint an NFT was around $70. For many middle- and low-income individuals, the break-even price alone is simply not affordable. Moreover, complex crypto wallets, unsustainable practices, and upfront fees discourage more people from participating in the industry and inhibit its expansion.To make entering the NFT space less costly and easier, Rarible has partnered with Flow to support its primary and secondary markets. Flow is the blockchain developed by Dapper Labs and used in its NBA Top Shot offering. It has fewer barriers to entry for consumers and brands than Ethereum, on which most NFT marketplaces operate.'
NFT startups have been able to raise large sums of money as investors recognize the importance of backing early players in the digital collectibles space. OpenSea, one of the most popular NFT hubs, received a $23 million funding round from Andreessen Horowitz and Naval Ravikant in the spring. In March, SuperRare, an invite-only NFT marketplace, received $9 million in Series A funding.
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