One of crypto’s very first liquidity aggregators is entering the NFT space.
0x Protocol’s v4 release will soon let any project using the protocol’s smart contracts to offer swaps between non-fungible tokens (NFTs). Like traditional token swaps, NFT swaps let enthusiasts trade one digital collectible for another.
0x is currently available to users of Ethereum, Avalanche, Fantom, Optimism, Polygon, and Binance Smart Chain. The new swap offering will first be launched on Ethereum and then the community of ZRX token holders, the native token for 0x, will vote on which chain should be launched after that.
Prior to today’s announcement, 0x's primary focus has been to supply developers with tools they need to spin up decentralized exchanges (DEXs) on top of the Ethereum network.
The co-founder of 0x Labs, the team behind 0x Protocol, Will Warren said, “We believe it’s critical that markets are built on open standards and open-source code. We are fully committed to supporting a vibrant NFT ecosystem that spans multiple blockchains by launching a credibly neutral exchange infrastructure that is both robust and non-extractive.”
0x touts its smart contracts as equipped with built-in advantages such as 54% cheaper gas costs, royalties for creators, free non-custodial listings on any 0x-based NFT marketplaces, and more. This means that developers on any of the compatible blockchain networks can turn to 0x for a toolkit that lets them quickly build their marketplace without having to start from scratch.
SudoSwap and Trader.xyz, for example, are already using 0x v3 smart contracts for these kinds of swaps, and are expected to upgrade to v4 once the launch has been complete. Warren expects more projects to join in the near future too.
It should be noted that, unlike traditional token swaps, NFT swaps are new and so far unproven technology, so it remains to be seen whether 0x's ambitious new project will succeed. Warren has, however, expressed confidence that it will.
“We anticipate many new NFT projects powered by 0x will join our ecosystem. This will ultimately reduce market fragmentation, drive greater transparency and interoperability in the space, and help to prevent the platform monopolies that exist in Web 2.0,” he added.
NFTs bumper month
0x's new offering comes amid an incredible year for NFTs overall. OpenSea, the industry’s most popular NFT marketplace, is currently on track to post its best month ever, while Dune Analytics reports that the platform’s monthly volume for January is just over $4.8 billion.
Its previous high, which OpenSea hit in August, was roughly $3.4 billion.
Much of this activity has been buoyed by more celebrity buy-in with the likes of rapper Eminem, Steph Curry, Post Malone, and many others scooping up their own NFTs.
Larger “Web 2.0” firms, like those Warren mentioned, have also keyed into the trend. Instagram and YouTube, for example, have both signaled their intent to get involved in some form or another with the trend.
Assuming the uptick continues, 0x’s NFT swap feature may very well become a standard in the digital collectibles space.