Uniswap has recently announced that its NFT platform will now allow users to purchase non-fungible tokens using any Ethereum-based token. This move is aimed at gaining a share of the NFT market, which has so far been dominated by platforms like OpenSea and Blur.
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
The introduction of this new feature is expected to be well-received by NFT traders, who have faced many restrictions when buying non-fungible tokens on various marketplaces. Some platforms are specific about the kind of token required before a user can complete a transaction. With Uniswap’s new feature, NFT traders can use any token supported by the Ethereum blockchain to make a purchase using its simplified interface, including stablecoins such as USDC and USDT, and even meme coins like Shiba Inu.
Uniswap’s 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. The crypto will then be pushed to OpenSea’s Seaport protocol, where the transaction will be finalized. This new integration is a game-changer for NFT buyers who previously had to swap one crypto for another before completing a purchase. In the future, Uniswap plans to support the purchase of a single NFT using multiple cryptocurrencies.
Uniswap hopes that this new feature will boost activity on its NFT marketplace. Since adding NFT trading capabilities to its platform last November, the protocol has seen fewer than 10,000 transactions in total, translating to about $7.6 million in total volume traded. Data from Dune Analytics indicates that the platform has about 16,600 total sellers and 5,400 total buyers, which is relatively low compared to Uniswap’s 4.8 million users. However, with the introduction of this new integration, Uniswap aims to transfer the popularity of its core offering to its NFT marketplace and boost trading activity.