Feb 18, 2023
OpenSea Revamps Platform to Counter Falling Dominance
OpenSea, the leading nonfungible token (NFT) marketplace, recently announced major changes to the platform in order to win back its migrating customers. The changes include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators.
The move comes as competing marketplaces such as Blur have surpassed OpenSea in daily Ether (ETH) trading volume as users are looking for a trading arena that works in their favor.
Daily trading volume of major NFT marketplaces. Source: Nansen
OpenSea admitted that they had been losing users to other “NFT marketplaces that don’t fully enforce creator earnings,” and the new measures are an attempt to revitalize its dominance in the space.
The company also noted that they had been defending creator earnings on all collections while reiterating its support for Operator Filter — a function aimed at helping creators secure their revenue for the resale of their work.
Blur’s daily trading volume supremacy can be attributed to its new royalty policy showcasing differences in royalty payment options between its platform and OpenSea. The new policy allows creators to earn royalties on multiple platforms at a time, while OpenSea’s policy restricts creators to earning royalties on only one platform.
Amid the royalty war between the two marketplaces, community members highlighted the importance of competition in the industry. Without zero royalty marketplaces, more prominent players like OpenSea would eventually increase fee structure, which would hurt creators and collectors.
OpenSea plans to continue testing the model and identify what works best for the community and the organization. Community members speculate that OpenSea would probably increase its platform fees in the future if it successfully manages to amass its lost customers.
The news of OpenSea’s changes comes after YouTube’s appointment of new CEO Neal Mohan, who is known for his inclination to use NFTs and Web3 as revenue streams for creators.
While serving as YouTube’s chief product officer, Mohan outlined tentative plans in February 2022 to integrate features such as metaverse-based content experiences and content tokenization via NFTs.
The changes to OpenSea and the appointment of Mohan are indicative of the growing popularity of NFTs and the web3 space. NFTs are becoming increasingly popular as a form of promotion and marketing, with more and more companies turning to NFT marketing agencies and web3 agencies to help them sell NFTs. As NFTs become more mainstream, the marketplaces that offer the most competitive fees and the best creator earnings will be the ones that reap the rewards.
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