The past few weeks have been a dark time for NFT enthusiasts and players in the cryptocurrency industry, but for startups and executives buried in a vision of the crypto future, it was also an opportunity to double.
This week, Uniswap announced that it has made a new acquisition, purchase of NFT marketplace aggregator Genie for an undisclosed amount. The purchase was made by Uniswap – a startup – which raised millions of funds from companies such as Andreessen Horowitz and Paradigm to help build Uniswap – a decentralized exchange protocol.
Users know Uniswap as a decentralized way to replace a wide range of tokens; this new acquisition will bring irreplaceable tokens into the mix. Genie provides users with a library of NFTs available in all markets and makes it so that they can view and trade NFTs on most of these platforms. The Uniswap team says it will use the product to incorporate the Uniswap NFT vertical into its platform, which will be launched this fall.
A company’s bet on NFT aggregation is a bet on the diversification of the NFT market over time. Currently, the vast majority of NFT’s volume takes place at OpenSea, although some competitors such as LooksRare and Magic Eden are showing signs that they will separate parts of their market share. Coinbase seemed to spoil the early introduction of its own NFT market, suggesting that OpenSea could be a fairly large market leader to be replaced.
The time of acquisition is coming because the future of the volume of NFT trading has been called into question as the wider cryptocurrency market has fallen sharply. While the total volume of transactions in the past month fell only slightly, the volume of NFT purchases in USD fell by more than 66 percent according to DappRadar.