The growth of crypto art has been one of the great events in 2021. In addition to the attention of artists, who can now monetize their art on Ethereum and get closer to their audience, it has also attracted the attention of investors interested in finishing works with good potential for future appreciation and the mainstream media, which sees an increasing movement of sales of digital arts increasingly valuable.
Today we will analyze one of the projects that facilitates the interaction between users of this ecosystem and allows anyone to create their own NFT: the Rarible marketplace.
The growth of crypto art has been one of the great events in 2021. In addition to the attention of artists, who can now monetize their art on Ethereum and get closer to their audience, it has also attracted the attention of investors interested in finishing works with good potential for future appreciation and the mainstream media, which sees an increasing movement of sales of digital arts increasingly valuable.
Today we will analyze one of the projects that facilitates the interaction between users of this ecosystem and allows anyone to create their own NFT: the Rarible marketplace.
WHAT IS A MARKETPLACE
As a result of the increased interest in NFTs, a large number of marketplaces emerged, which are places where it is possible to buy, sell, create (mintar) and make available unique digital assets.
The biggest and best known are OpenSea, SuperRare, MakersPlace, AsyncArt, Known Origin, Rarible, Nifty Gateway, among others
RARIBLE
Built on Ethereum and supporting ERC-721 (a completely non-fungible token) and ERC-1155 (semi-fungible tokens) standards, Rarible is one of the most popular virtual galleries today, where anyone can lie (tokenize process and create a NFT), buy and sell digital collectibles.
The project was created in Moscow by developer and entrepreneur Alexei Falin and product manager Alex Salnikov, in early 2020. In July 2020, Rarible issued its own governance token - RARI, with the aim that holders would control the platform.
According to the official Rarible page on LinkedIn, the team consists of more than 20 employees, many of whom are artists, who understand the industry and the difficulties of monetizing works of art.
RARIBLE DIFFERENTIALS
The platform is differentiated by its ease of use. While platforms such as SuperRare and MakersPlace select artists, at Rarible anyone, without any programming skills or influence, can create an NFT, sell or make purchases, requiring only a connection to a WEB 3 wallet, such as Metamask.
This absence of barriers to entry allows more individuals to experience in practice how NFTs work and opens the door to new talent, contributing to increased adoption.
Another feature is that it is the only platform within the NFT space, so far, to use a token for governance, with which holders are given voting rights and can submit proposals to improve the application.
SEE HOW TO CREATE YOUR OWN NFT IN RARIBLE
- Sign in to rarible.com
- Connect a web wallet 3
- Click on “create” at the top of the page
- Select whether you want to match a Single NFT or an NFT with multiple editions
- Using the image, video or music file
- Specify name, description, royalties and other complementary information
- Click create item
- Sign the transaction and pay the gas fees
Remembering that depending on the moment these rates can be high. This needs to be taken into account when thinking about NFT pricing.
Some celebrities have been using Rarible, launching a profile and selling some creations.
Among them, Lindsay Lohan, who sold the work “Bitcoin Lightning” for more than $ 50,000. American billionaire Marc Cuban and rapper Soulja Boy are also among the personalities who have already used the app.
TOKENOMICS
The total supply of RARI is limited to 25,000,000. Its current circulating supply is 855,330 and its issuance depends on the participation of users on the platform.
Most RARI tokens (60%) are reserved for buyers and sellers in the market, who receive a portion of the 75,000 tokens that are distributed each week. In addition, an airdrop of 10% of the total supply is distributed among NFT holders (8%) and other Rarible users (2%). The remaining 30% is reserved for investors and staff.
In February 2021, the main marketplaces added up to more than US $ 350 million in trading volume. In January, that amount was US $ 71 million, demonstrating the expansion of the last few weeks.
In the last 30 days, the volume traded at Rarible was US $ 28.63 million, with more than 235 thousand transactions and more than 75 thousand users.
THIS PUTS THE RARIBLE FIRST AMONG THE MARKETPLACES.
At the end of 2020, the total market value of NFTs was $ 52,293,650 (42,720 ETH) with 53,663 exclusive works of art sold on the five largest platforms. Nonfungible.com, on the other hand, accounted for approximately 5 million NFTs sold, totaling more than $ 150 million.
While this is still a fraction of the $ 63.7 billion annual volume in traditional art markets, the number of digital artists, digital art and collectors is growing rapidly and 2021 promises to be even greater. An interesting fact: in the traditional art markets, 1% of the artists represent 64% of the sales value.
MARKETPLACE LIQUIDITY MINING
Along with the ability to buy, sell and create NFTs, Rarible rewards active users, who are responsible for providing liquidity with the native ERC-20 RARI token.
75,000 RARI are distributed weekly, and the user receives according to the volume of purchases and sales made. The distribution it occurs fifty-fifty between buyers and sellers.
GOVERNANCE
Currently, most decisions are made by the Rarible team, but the objective of the project is to evolve to become an Autonomous Decentralized Organization (DAO), where all decision rights will belong to users of the platform.
The RARI token works as an incentive and governance tool. Through it it is possible to vote on system updates and participate in curatorships and moderation of the platform.
The RARI token has risen more than 600%. The price reached its all-time high of $ 42 in March 2021.
It seems that CryptoArt is definitely here to stay. Ethereum has found a promising niche for creators and art fans to share and interact directly in an environment that works around the clock, 24 hours a day and that has the potential to become the future of digital art and social media.
Many innovations are yet to emerge in this ecosystem and one of them is Nftfy, which will enable the fractionalization of NFTs, creating more liquidity and better monetization for this type of asset.
Nftfy will also enable small investors to own fractions of more valuable NFTs, once and for all democratizing digital art. On the artist's side, this type of initiative can explode the growth of his community, since now more people can participate in his life's work.
We are only at the beginning of the positive impact that technology will have on the fine arts.