Feb 19, 2023

OpenSea Revamps Platform to Regain Dominance in NFT Market

OpenSea, one of the major non-fungible token (NFT) marketplaces, recently announced changes to its platform in order to stay competitive amidst other NFT marketplaces.

Data from Nansen revealed that NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume on Feb. 18. This was likely due to users anticipating greater returns on their NFT investments and looking for a trading arena that works in their favor.

OpenSea reacted to the decreasing user base by announcing three major changes: a 0% fee for a limited time, introducing optional creator earnings, and leniency on other operators.

The company admitted that users were migrating to other marketplaces “that don’t fully enforce creator earnings,” and the new measures were an attempt to win back customers. OpenSea also mentioned that it had 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.

Blur’s daily trading volume supremacy can be attributed to its new royalty policy, which showcased differences in royalty payment options between its platform and OpenSea. The latter’s policy “prevents collections from being able to earn royalties everywhere,” which is why creators are limited to earning royalties on only one platform at a time.

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. It is speculated that OpenSea would increase its platform fees in the future if it successfully manages to amass its lost customers.

In other news, YouTube’s appointment of new CEO Neal Mohan was perceived as a win for the crypto community considering Mohan’s 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 NFT space is constantly evolving and OpenSea’s new changes are a great example of how marketplaces are adapting to the changing landscape. It remains to be seen if OpenSea’s new measures will be successful in bringing back its users and increasing its market dominance.

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