- ZRX token has gained 53 percent in the past few days following an announcement of the partnership between 0x and Coinbase.
- The protocol will power Coinbase’s social NFT platform due to its low gas fees and multiple smart contract abilities.
Ethereum-based decentralized exchange (DEX) 0x has partnered with Coinbase to power the latter’s newly-launched social non-fungible token (NFT) platform. The news has seen ZRX, the native token of the 0x protocol rise to a five-month high.
Of note, 0x is an open-source protocol developed by 0x Labs. The protocol enables peer-to-peer (P2P) exchange of tokens across an increasing number of blockchains. Some of these networks are Polygon, Binance Smart Chain (BSC), Avalanche, and Fantom.
The deal with America’s largest crypto exchange is one of 0x’s greatest achievements yet. In a blog post, Coinbase says it chose the protocol to power its NFT platform since it offers competitively lower transaction costs, in comparison to other blockchains. Other reasons for the partnership, according to 0x Labs are:
With powerful multi-chain NFT swap support and the most robust feature set of any NFT exchange protocol, 0x was the obvious choice to power the new marketplace.
Additionally, the developer team says that with the “0x protocol v4 being up to 54% more gas efficient, Coinbase marketplace users will enjoy low trading costs.”
Coinbase partners with 0x for NFT project
Importantly, 0x’s v4, launched earlier this year, enables multi-chain swapping of NFTs. NFT swapping, just like token swapping, allows users to exchange digital collectibles.
And other than enabling 54 percent cheaper gas fees, 0x smart contracts allow royalties for creators. The smart contracts also support free non-custodial listings on any 0x-based NFT marketplaces, among other platforms.
Following the partnership announcement, the ZRX token rose to trade at $1.18, a price that was last seen in Nov. 2021. Despite having corrected to $1.02 at reporting time, ZRX is still up 38.1 percent in the past 24-hours. The token also recorded a 24-h high of $1.15, up 53 percent in the past day. The token’s trading volume has also surged 3,311 percent in the past day. ZRX is currently at position 111, with a market cap of $868 million.
On the partnership, Will Warren, co-founder, and co-CEO of 0x Labs remarked:
We’re thrilled that Coinbase is using 0x to power their new social marketplace for NFTs and anticipate this launch will unlock a massive wave of new users into the blockchain space.
Coinbase’s social NFT platform
First announced in October 2021, the beta version of Coinbase’s NFT platform went live yesterday. To begin with, the platform is only usable with self-custody wallets such as Coinbase wallet, MetaMask, and wallets that support the WalletConnect protocol. The platform allows NFT buying and selling, in addition to social interaction among users.
In the future, the exchange intends to incorporate optional NFT custody services. Coinbase also plans to let users purchase NFTs with a Coinbase account or even a credit card.