Amazon’s upcoming entry into the NFT market could have potential ramifications for Avalanche, Ethereum and this altcoin. As Kriptokoin.com, we have compiled the altcoins that can rise with Amazon’s NFTs for you.
Amazon will enter the NFT market
In another sign that the NFT market may be ready to recover in 2023, reports are circulating that tech giant Amazon (AMZN) will officially enter the NFT market in April. There are several different directions this new strategic venture could go in, with significant implications for all major players in the NFT market right now.
There are several scenarios for the launch of Amazon’s NFT initiative and how this could affect the future outlook of top cryptos like Avalanche (AVAX), Ethereum (ETH), and Polygon (MATIC).
3 altcoins expected to skyrocket
Avalanche
Avalanche will be a potential beneficiary of Amazon’s expanded push for NFTs due to its current partnership with Amazon Web Services (AWS). In mid-January, Avalanche became the first Tier 1 blockchain to partner with AWS in a move heralded primarily as a way to increase enterprise and government adoption of blockchain technology.
Initial reports of the new Amazon NFT initiative suggest that it will be coordinated by a consumer-facing unit of the company, such as the e-commerce unit or the Twitch gaming unit. Therefore, Avalanche will need to expand its partnership with Amazon beyond AWS.
In this scenario, Amazon can use the Avalanche blockchain to print new NFTs, which will then be sold directly on the Amazon website as a ‘digital collectible’ or distributed as part of blockchain games. Obviously, this altcoin has the potential to increase demand for NFTs and could give Avalanche a big boost as investors rethink their future long-term growth prospects.
Ethereum
Another scenario is that Amazon plans to create a digital NFT marketplace similar to OpenSea, which is currently one of the top NFT digital marketplaces by trade volume. In this scenario, Amazon will likely create an online marketplace for NFTs that will be modeled after the current Amazon e-commerce experience.
Currently, most of the top NFT marketplaces specialize in NFTs from a particular blockchain. For example, OpenSea specializes in Ethereum NFTs and Magic Eden specializes in Solana (SOL) NFTs. Therefore, Amazon’s choice of blockchain will be crucial here.
If Amazon decides to strengthen its existing partnership with Avalanche to create this digital marketplace on the Avalanche blockchain, this could potentially upset the balance of power in the NFT market. The immediate winner will be Avalanche, while both Ethereum and Solana (#1 and #2, respectively) may lose market share.
If the goal is to quickly grow and scale the NFT market, Amazon cannot ignore what already exists on Ethereum, which built the NFT market from the ground up and is home to some of the world’s most popular NFT collections.
polygon
Over the past year, Polygon has significantly increased its profile in the NFT space, thanks to several brand partnerships such as Starbucks (SBUX) and Nike (NKE). Polygon has also partnered with Meta Platforms (META) in the rollout of NFTs for Instagram users. This could be problematic from Amazon’s point of view, because it could push Meta’s NFT ambitions into direct conflict with Amazon’s NFT ambitions.
The tech industry is full of ‘walled gardens’ and this could be another example of competing tech competitors and competing tech platforms. Therefore, I am less optimistic that Polygon can benefit from any new Amazon NFT initiatives.
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