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Ethereum ranks as the top blockchain for non-fungible tokens (NFTs). However, the entrance of Coinbase in the NFT space could threaten this, and soon, other blockchains could start commanding a large share of the booming and highly-competitive space.
Coinbase NFT, the NFT platform for one of the largest cryptocurrency exchange platforms, is looking to diversify towards other blockchains. Some of the blockchains that could soon be supported by Coinbase NFT include Polygon, Solana and Tezos.
Coinbase NFT poll
When the poll was first put up by Coinbase, Tezos took the lead, which remained the case for a significant period. However, Polygon received 55,000 votes in just a few minutes, creating controversy that the influx of these votes in just a short time could be triggered by bots.
Which blockchain are you most looking forward to us supporting in the future?
— Coinbase NFT (@Coinbase_NFT) February 25, 2022
When the poll was closed, Polygon took the lead by garnering 42.2% of the entire votes, Solana came in second, scooping 26.4% of the votes, while Tezos ranked third with 24.2% of the votes.
The interest of Coinbase in other blockchains, including Tezos, could be because of the issues that plague the Ethereum blockchain. Users on the Ethereum blockchain complain of extremely high gas fees and slow transaction speeds. Moreover, Ethereum is still using the proof-of-work consensus known for consuming high amounts of energy.
The demand for Tezos NFTs is already beginning to show. Snoop Dogg, one of the most popular collectors in the market, announced he would spend 64.6 Ether tokens, valued at over $200K, to transition his NFTs to the Tezos blockchain.
The Tezos NFT community is also actively involved in promoting the usage of the blockchain for non-fungible tokens. Recently, this community raised $60,000 in around 72 hours to support the Ukrainians affected by the conflict. The NFTs on the blockchain are also seeing increased demand, with the ART & NFT: The Digital Roots collection recording over 16,000 TEZ worth of sales last month in less than a day.
Tezos is becoming popular with NFTs because it is one of the environmental-friendly blockchains. A recent analysis said that the Ethereum blockchain consumed 60MWh per year and a continuous draw of only 7 kilowatts. In comparison, Ethereum consumed 26TWh annually and a continuous draw of 3 gigawatts.
On Medium, Tezos praised its focus on environmental-friendliness, saying, “Compared to Ethereum, these numbers differ by a factor of over two million, between six and seven orders of magnitude.” The blockchain noted that this was why the blockchain was becoming attractive to artists and NFT developers.
Coinbase NFT is currently looking for a way to surpass OpenSea. The latter is currently the largest NFT marketplace by trading volumes. To differentiate itself, Coinbase NFT needs to support green blockchains and become a popular choice for NFT creators and collectors.
Tezos taking over the NFT space
Tezos is one of the largest blockchains in terms of market capitalization. Tezos' native token ranks as the 48th largest cryptocurrency with over a $3 billion market cap. Tezos is open-source, and it has a global reach of validators, academics and developers. Through the efforts of this community, Tezos can attract more assets and applications.
The blockchain has also focused on security and efficiency. Such is needed to boost the value of assets and bolster the blockchain's real use cases. It also utilizes some of the most reputable languages, including Michelson and OCaml. These languages support formal verification, popular with crucial industries such as nuclear and semiconductors. Therefore, the blockchain has the potential to be one of the leading players in the market.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.