Background

The core requirements in NFT trading are liquidity and price, and the real moat of the NFT trading market is built on the advantages of NFTs liquidity and price when they are sold. At present, mainstream NFT trading platforms, such as OpenSea, LooksRare, etc., users can only trade with single-point pending orders, which is difficult to clinch a deal. Although NFTs was performed actively in 2021 and early 2022, liquidity problems are not only fatal to the development of DeFi, but also to NFTs. The NFT trading activity is on the low side compared to DeFi, and its total trading volume is less than 2% of that of decentralized cryptocurrency exchanges.

The core reasons for the lack of liquidity in NFT transactions

Few Buyers

What separates NFTs from fungible tokens is their rarity and utility. NFT investors can easily trade tokens like Ethereum and Sol through DEX/AMM, but each NFT sale has a smaller buyer pool and therefore a relatively small transaction volume.

Difficult to Price

While NFTs have huge imaginations in “moving” the current narrative of physical asset chains, they are still very novel to the mass market. The lack of historical data points and widely accepted valuation analysis are key reasons for the difficulty of hype and pricing. Even NFTs within the same series may have vastly different prices due to differences in rarity and subjective opinion. This leads to low liquidity and unsatisfactory capital efficiency.

High Price

Similar to real estate, even in a bear market, the average price range of blue-chip NFTs is between $11K-$120K. High barriers to entry have caused many investors to lose their interest.

TreasureNFT came into being in this context, seized the core demand, solved the core liquidity problem through the automatic algorithm quotation mode, and created the next era of NFT Cambrian explosion.