Feb 19, 2023
OpenSea Revamps Platform to Regain Dominance in NFT Market
OpenSea, one of the most prominent non-fungible token (NFT) marketplaces, recently announced major changes to its platform in an effort to stay competitive in the web3 space. The changes include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators.
The move comes after data from Nansen showed that NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume on Feb. 18. As users look for greater returns on their NFT investments, they’re increasingly drawn to marketplaces that work in their favor.
OpenSea acknowledged that it has lost users to other “NFT marketplaces that don’t fully enforce creator earnings” and the new measures are an attempt to win back its migrating customers. The company believes that it defended 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.
The difference in royalty payment options between OpenSea and Blur is likely a major factor in the latter’s success. Blur’s new policy states that OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere, limiting creators to earning royalties on only one platform at a time.
Amid the royalty war between the two marketplaces, community members highlighted the importance of competition in the industry. If it weren’t for 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 — a predatory move often noticed in industries with less competition.
The recent appointment of Neal Mohan as YouTube’s new CEO is perceived as a win for the crypto community. 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’s platform are an attempt to stay competitive in the web3 space and attract more users. With the introduction of optional creator earnings, the platform is hoping to encourage NFT creators to use their platform for selling NFTs. OpenSea is also looking to capitalize on the NFT marketing trend, with the platform offering a range of services from Twitter NFT marketing to NFT marketing agencies and web3 agencies. The platform is also hoping to benefit from its leniency on other operators, allowing users to access different marketplaces.
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