Since the inception of the NFT ecosystem, there have been centralized marketplaces, most notably OpenSea. Now, the Sudoswap NFT marketplace is gaining traction as a decentralized alternative.

Over the past few months, Sudoswap, a new marketplace for trading NFTs, has grown exponentially in popularity. 

Total volume on the Sudoswap AMM has now crossed the $20m threshold.

The Sudoswap NFT marketplace has been dubbed the “Uniswap of NFTs”. 

List of NFT collections on the Sudoswap NFT marketplace

With the release of so many new NFT marketplaces, what makes this one different? Well, for one – it’s getting traction. Something most new marketplaces like Coinbase can’t say.

According to Dune Analytics, Sudoswap:

  • Gained ~$2m in sales on 17th August alone. That’s ~14% of the daily market share vs OpenSea
  • Added over 11k users
  • and traded over 81k NFTs on its platform

All in under just a month.  

3 Major Problems With NFTs

Sudoswap has become increasingly popular on Twitter as its trading volume and user count has skyrocketed. As of August 20, 2022, it has over US$20 million in trading volume and over 11,000 total users. 

So, why are people liking it? Currently, NFTs have three problems.

  • They’re super illiquid. Consequently, the only way to sell it is to have someone buy it from you on the other end.
  • Most exchanges aren’t fully decentralised, unlike OpenSea and LooksRare. They host a database where their order books are stored off-chain.
  • Listings must be manually changed. For instance, you cannot request that OpenSea increase the price of your listing if those below it are being purchased.

How The Sudoswap NFT Marketplace Solves These 3 Problems

Liquidity pool on the Sudoswap NFT marketplace

Since its launch in July, it is a next-generation decentralized gas-efficient NFT marketplace that allows users to swap NFT using an automated market maker (AMM) model by letting anyone become their own marketplace.

  • Trading NFTs through liquidity pools means you can immediately liquidate your NFTs by selling them to a liquidity pool. No more waiting for a buyer to take your jpegs.
  • Everything is completely on-chain. All data & transactions are available on the blockchain.
  • There is the option for users to create their own liquidity pools and set their own rules. For example, you can set it up so that for every sale in the collection, your other listings will increase in price as well.
  • On top of it, there are fewer fees and no royalties on Sudoswap. They don’t pay out any creator fees and just keep 0.5% of each transaction (a hot topic recently).

To Wrap Up: 

Clearly, Sudo has found product market fit: Sudoswap continues to break ATHs even though the rest of the NFT market is in the depths of a bearish trend: weekly NFT volume has fallen from a peak of $6bn to just around $200m, despite this.

Liquidity providers are also able to earn trading fees on their NFTs, something previously not possible.

Although Sudoswap is currently far behind Opensea in terms of popularity, the idea is intriguing. It allows you far more flexibility when trading NFTs and offers fast liquidity if you need it.