They've passed DeFi and become They're becoming mainstream. Even TacoBell and Charmin are in on it. So we've covered NFTs a lot on this channel. But today I'm going to focus on how we're going to see a And this is because Coinbase recently announced their NFT Marketplace. There's far more to this than you would expect, and I'm going to lay this all out for you. So Coinbase's NFT Marketplace is getting a lot of attention. Two and a half million people have already signed up for the early access to this platform. Now looking into the topic, the main point of conversation seems to be that Coinbase is going to overtake OpenSea as the kingpin of NFTs.
So I dug a little bit deeper into this issue to try and make some sense out of what's become a somewhat controversial point among whales and institutional crypto investors. Well, I spent a lot of time trying to figure just that out, and this video is going to give you a better idea about whether investments into both NFTs and Coinbase as a company are a good idea at this point in time. Also, a quick portfolio update. As part of my Patreon, I post all of my crypto buys and sells, and despite some recent dips in crypto, the buy alerts are still up more than 130% in just over six months, nearing $120,000 in profit. So if you'd like to join, make sure you grab a spot that will be linked in the description of this video. So the Coinbase announcement wasn't actually that surprising for a number of reasons. I mean, the reason that Coinbase was created in the first place was to act as this kind of bridge between the average person's use of the Internet and the more complex and sometimes intimidating world of crypto.
Coinbase simplifies it all down for better or for worse. But either way, it allows anyone who wants to get started in crypto to do so without needing to understand their gas fees, blockchains or public and private keys. They play an important role. They open most people's eyes to this wild world of crypto. So yeah, when you make crypto a little bit more like Venmo, it's not hard to see the draw, except I do have to say that Venmo, as nice as it is, probably has I mean, they have transactions, but they also have stories, which is kind of the same thing.
And I can comment on stranger's transactions, which I definitely do all the time just to weird random people out. But Venmo slander aside, Coinbase holds about 11% of all crypto assets in the world at this point, which is huge, and this has the potential to grow the NFT space even larger. But investors are cautious at best, since the Coinbase IPO, where the company's value peaked at over $100 billion, the stock was pretty lukewarm for a while, going anywhere between $220 to $300 per share. The reason for this is the stock price of Coinbase is very closely related to the movements in crypto prices. When you see prices going up for Bitcoin, you can expect that Coinbase's stock will move in the same direction. The company's revenue, which is driven by transaction fees, was revealed to be down by nearly half at $1.09 billion from Q3 this year.
More transactions means more profits for Coinbase, and an interesting fact that I found that Shiba Inu's massive rally of 777% last month gave Coinbase this bit of a rebound in revenue because 59% of their transaction fees come from Altcoins getting pumped. All things considered here, they're doing pretty well for a company that hasn't even been public for a year yet. But to maintain their edge in the market, they need to get creative. And we've talked in the past about how the Coinbase lend program was ultimately cancelled and how I saw this as a way for Coinbase to become a viable gateway for newbies to get into DeFi. But that won't be happening as of now. And because of this, there's a lot riding on Coinbase entering the NFT space. So comparing the numbers, both Coinbase's addressable market and the NFT market NFT trading volume, even as niche as it is, hit $10.7 billion as of last quarter. That's still a long way off of the total $3 trillion crypto market cap, but it is well over five times the reported revenue of Coinbase from earlier this year.
It's also useful to compare Coinbase's impact with OpenSea, which has so far been the largest catalyst for NFT trading. OpenSea alone pulls in billions a month in trading volume, and this is despite the fact that NFTs are What I'm saying here is there's room to grow in the space. Now the Coinbase COO Emilie Choi points out implying that they envision different users going to each platform, which I don't exactly believe. However, fun fact: Coinbase was actually one of the first investors in OpenSea, and they continue to hold that stake in the company today. Mind blown. So either way, Coinbase wins.
But their platform changing NFTs as we know them, is of course, a bigger win. Right now, Coinbase has only announced Ethereum-based NFTs for their platform, which will make use of ERC-721 and ERC-1155 standards. Now here's where I'm starting to see an issue. Coinbase, in what seems like an effort to legitimize their claim to the NFT space, says that each and every NFT that they create will be minted directly onto the blockchain, which is great. But in an article I found by TechCrunch, they reported that the rollout won't incorporate a Layer-2 scaling, and this is important.
This means at launch, Coinbase users are going to be exposed to very high gas fees and pretty long transaction wait times. Now, there have been rumors that MATIC will come in and eventually clean things up and make them cheaper, but we don't know for certain just yet. Either way, I think the fees will be a bit of a shock to NFT newbies who go to buy their favorite JPEG and see outrageous gas fees. Here's a screenshot I took a month or so ago of the gas fees that I personally saw when trying to mint my fake Max cash tokens.
$23,000, I mean, you could buy like 8 German innovation awards for that. Think about it. Now, this is abnormal, but even a more normal $60 gas fee is going to be appalling. If I were Coinbase, I probably would try to include gas fees within the listing price of an NFT. But this doesn't take away from the fact that millions of additional people will now have access to NFTs. This is a win for both the NFT market and Coinbase as a whole. However, until they get their gas fees figured out, this could set wildfire NFT adoption back by a few months. Once we see NFT transaction fees on Coinbase down around $1 or less, the floodgates will be open and we'll talk more about Coinbase as an investment in just a minute. But first, when I read the report on what the Coinbase marketplace will look like, the features seem pretty promising. Their approach to making this work seems to be in community building first, where the goal is to make creating and promoting NFT art feel more like going through someone's Instagram feed than shopping on some dark web market.
Early renders suggest that users' profiles will look a lot like social media profiles with art and corresponding prices displayed as a grid. Except here the grid won't have photos of your mom or your summer trip to Vermont unless you want to make your mom into an NFT, which I don't recommend. It seems disrespectful for some reason. But the main goal in all this is social engagement. And here's where I think things could really take off. What I see happening is an evolution of the influencer marketing economy. The Digital Marketing Institute reports that 70% of teens trust influencers more than other celebrities. And in the same report, they say that 49% of all consumers actually take influencer recommendations. Now, the integration of social media and NFTs has been pretty slow to grow so far. Twitter, only in the last month introduced a way for users to authenticate NFT art within their profiles. Coinbase aims to become the de facto platform for social media engagement around NFTs, as well as a platform for buying and selling those same NFTs.
You know, community has a way of driving demand, and that's a concept that brands have been making bank on for centuries. So far, NFT marketplaces have been home to crypto assets whose value has been determined largely elsewhere. You know, you might be a fan of Doja Cat and you and a million others find your collection of Tezos NFTs valuable, or you might be a fan of the NBA who also owns a marketplace for collectible digital assets. The thing is, countless projects of abstract art and monkeys smoking pipes tend to rely on promotion from influencers to get any traction outside of the platform. But when a marketplace becomes the community platform in and of itself with content baked right in that inspires customers to trade, I can see NFTs becoming more and more integrated into the life of an average social media user as long as they execute this well.
So if Coinbase can do this and get a daily critical mass of users looking at NFTs and creating their own, And investment in Coinbase is actually one of the safer bets in crypto right now. They have profit margins of around 40%, a P/E ratio of 33, and a fairly large competitive moat. Now, there are risks, of course, in this investment in that it's an entirely new industry and the stock is at near all-time highs. But when compared to some crypto projects, this could be considered a safer investment in the space. Of course not financial advice. But no matter your investment strategy, this is an exciting time to be in crypto. Now, Coinbase will still have to show us how their platform will work, how they'll manage to pull in new retail investors, and whether or not they can actually expand how NFTs are used. If anything, the level of competition that they'll bring to the market should hopefully catalyze creators to come up with new use cases for these digital assets, beyond what we've seen so far in games and collectibles.
And that's gonna do it for today. Make sure you nab one of those spots on Patreon, and of course, as always, have a profitable day..