NFT supporters in the sector have been silent due to the continued downturn in the crypto markets. However, Uniswap has increased its focus on the NFT sector and bought NFT marketplace aggregator Genie, seeing opportunity in adversity.
Information About The Purchase
Investors like Paradigm and Andreessen Horowitz helped Uniswap raise millions of dollars in fundraising. The protocol explained in a blog post that it is expanding its product offerings to include ERC-20 tokens and NFTs in line with its mission to enable universal ownership and exchange. This expansion was the primary impetus behind the protocol’s acquisition of Genie, which enables users to find and trade NFTs on most platforms. The acquisition will make it possible to include NFTs into Uniswap products, beginning with the online application. Thanks to the connection, users will soon be able to buy and sell NFTs across major marketplaces directly from the Uniswap web app. To make the platform complete for Web3 users and builders, Uniswap also intends to incorporate NFTs into its widgets and developer APIs.
The Foray Into NFTs Is Not The First
When it introduced Unisocks in 2019, Uniswap also experimented with the NFT market. The first time that actual assets backed NFTs and NFT liquidity pools were with Unisocks. On-chain generated SVGs were also made possible by Uniswap’s work on the Uniswap v3 NFT locations. The protocol added that it did not see NFTs as existing in a separate ecosystem from the ERC-20 tokens but rather as an additional source of value in the developing digital economy.
Airdrop of the USDC
Keeping with the web3 ethos, Uniswap also disclosed that it would airdrop USDC to current Genie customers to share some of the value with them. The projected airdrop will start in August and be available for the claim at any moment over the following 12 months. The protocol will soon make more information on the envisioned airdrop available.
A Problem For OpenSea
The wager made by Uniswap on NFT aggregation can be interpreted as a long-term wager on the diversification of NFT marketplaces. Most NFTs are currently traded on OpenSea, but there has been increasing competition in the market recently, with Magic Eden and Looks Rare eroding OpenSea’s market share. The purchase’s timing is also intriguing because it occurs when NFT trade volumes are low, and the bigger crypto market is experiencing a significant decline.