Users of the Uniswap NFT platform will be able to buy non-fungible tokens using any Ethereum-based token. The move is part of Uniswap’s efforts to gain a share of the NFT market, which has been dominated by OpenSea and, more recently, Blur.
NFT traders will find this a welcome move since there are many restrictions involved in buying non-fungible tokens on various marketplaces. For instance, some are quite specific about the kind of token required before user can complete a transaction.
Uniswap’s new feature allows NFT traders to use any token supported by the Ethereum blockchain to make a purchase using its simplified interface. This goes for stablecoins such as USDC and USDT and even meme coins like Shiba Inu.
1/ Have you purchased an NFT with any ERC20 token yet?
On the surface, your transaction will display like you are buying an NFT with any token in your wallet. But dig into the code, and things get a little more interesting: pic.twitter.com/CQuaCTeSfY
— Uniswap Labs 🦄 (@Uniswap) February 23, 2023
According to Uniswap, the new Universal Router contract will find “the most cost-efficient route” to swap any Ethereum-based token into the required token for the NFT sale to happen. Then it will push that crypto to OpenSea’s Seaport protocol, where the transaction will be finalized.
The new integration is a godsend for NFT buyers, who at times need to swap one crypto for another before completing a purchase. Moving forward, there are also plans to support the purchase of a single NFT using multiple cryptocurrencies. For example, if the NFT costs 2 ETH, buyers could pay with a mix of tokens as long as the full value is met.
Uniswap Hopes To Spark Trading On Its NFT Marketplace
Now, Uniswap hopes this new feature will spark some life into its NFT marketplace. Since adding NFT trading capabilities to its platform last November, the protocol has seen fewer than 10,000 transactions in total. This roughly translates to about $7.6 million in total volume traded.
Data from Dune Analytics shows that the platform has about 16,600 total sellers and 5,400 total buyers. These numbers don’t reflect very well on a protocol that boasts over 4.8 million users. It’s clear Uniswap hasn’t been able to transfer the popularity of its core offering to its NFT marketplace. However, with the new integration, things might change soon.
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the globe.