There’s an NFT marketplace war going on!!
Recent NFT startup acquisitions and other developments point to a potential “war” between NFT marketplaces.
Despite a weakened NFT market in recent months, top marketplace OpenSea has maintained its dominant 💪🏻 position in the space. However, that position is being threatened by rivals who are both growing in number and consolidating.
According to a new industry report from blockchain analytics firm DappRadar, the number of NFT marketplaces and aggregators acquired in recent months has potentially set up “looming NFT marketplace wars.”
Speaking of NFT marketplaces acquisition……,
🛒 In April, OpenSea made the first significant acquisition in recent months, acquiring NFT marketplace aggregator Gem. OpenSea CEO and co-founder Devin Finzer explained the move as part of a “need to better serve more experienced, ‘pro’ users.”
Furthermore, OpenSea recently launched its own Seaport marketplace protocol, which adds advanced features and reduces Ethereum gas fees (the costs associated with making transactions on the network).
OpenSea is not the only one shopping!!
🛒 Uniswap Labs, the creators of the DeFi protocol and the decentralized exchange Uniswap, acquired Gem’s main competitor, Genie, in June.
🛒 A day later, eBay announced the acquisition of KnownOrigin, a long-running NFT marketplace. While not a platform with significant trading volume, KnownOrigin provides eBay with the potential to quickly become a player in the NFT space.
It doesn’t end at acquisition wars!!!
The potential for shifting tides in the NFT marketplace is more than just acquisitions. Newer competitors, such as Magic Eden and X2Y2, are also gaining ground.
💡 Magic Eden currently has a market share of 90% or higher in the Solana space, despite OpenSea’s own push into the market, and recently announcing a $130 million Series B raise that values the company at $1.6 billion. The marketplace is looking to expand into other blockchains, and DappRadar reports that it already accounts for 10% of all NFT transactions.
💡 X2Y2 is an Ethereum marketplace that provides users with trading rewards similar to LooksRare, though LooksRare’s model has been criticized for encouraging “wash trading,” or trades between a user’s own wallets at artificially exaggerated prices. According to DappRadar data, X2Y2 has surpassed LooksRare in terms of trading volume.
Hey, how about, …what's it called…..? Coinbase NFT Marketplace?
…… Oh yeah, Coinbase’s own NFT marketplace was expected to make waves across the industry, but so far it has apparently struggled to attract traders. 🤷🏻♂️
OpenSea struggles in the heat 🥵
In the past year, OpenSea has faced a number of challenges 🔥, including alleged “insider trading” by a former executive and an exploit in which some users’ valuable NFTs were inadvertently sold for below-market prices.
However, the company’s recent moves, such as acquiring Gem and launching Seaport, indicate significant steps forward for the market.
Despite plummeting prices and drastically reduced trading volumes as a result of the crypto market crisis, NFTs are still being sold, suggesting that platforms could still engage in fierce competition.
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