On November 2nd, Metamask announced that it has partnered with NFTBank to provide users with NFT portfolio valuations. The move aims to solve the long-running problem of telling NFT holders how much their NFTs are worth. Although it is easy for users to tell how much their cryptocurrency portfolio is worth, the one-of-a-kind aspect of NFTs makes valuations difficult.
To come up with accurate valuations, NFTBank uses a machine learning algorithm that determines an NFT’s worth with 90% accuracy. The algorithm uses factors like floor price of the collection, the rarity score of the NFT, and the bid/ask distribution to come up with a specific value for the NFT.
NFTBank has worked to improve its algorithm for over a year, ever since the mega 2021 NFT bull run. The company has stated that the difficulty NFT traders face is that there is not sufficient infrastructure within the NFT industry compared to other Web3 verticals. That, which the non-fungibility of NFTs compounds, makes valuing NFTs a difficult process.
MetaMask has said that it will include NFTBank’s API directly into users’ Web3 wallets, so that NFT holders can see the valuation of their portfolios at a glance. NFTBank’s NFT price estimates will then become the “price standard” for MetaMask users. MetaMask is the most popular Web3 wallet, accounting for millions of users.
The goal, according to a statement MetaMask released, is to permit users to make better decisions about their NFT portfolios. There was no comment on when MetaMask would finish the integration between NFTBank and the MetaMask wallets.
Companies Make Moves with Web3 Wallets in 2022
Although MetaMask’s integration of NFTBank is exciting news for NFT holders, MetaMask isn’t the only company making moves in the Web3 wallet space. Here are three stories in 2022 about organizations launching Web3 wallets.
First, there is Reddit. Months ago, the message board company launched its Reddit Vault program, which allows users to create Web3 wallets. As of two weeks ago, the company now has more active wallets than leading NFT marketplace OpenSea.
Second, there is Robinhood. One month ago, the company best known for stock trading revealed that its non-custodial Web3 wallet is now live in “beta” mode. The wallet allows users to swap cryptocurrencies with no trading fees across the decentralized web.
Third and finally, there is KuCoin. Five months ago, the cryptocurrency exchange debuted a Web3 wallet that supports non-fungible tokens. The wallet is non-custodial, browser-based, and will let users protect and display their NFTs.
MetaMask’s integration of NFTBank is big news because it could add to the NFT infrastructure and help traders. Here at Rarity Sniper, we’ll be paying close attention for any further developments in the story.