OpenSea Reclaims 71.5% of Ethereum NFT Market in 4 Weeks

• OpenSea reclaimed 71.5% of Ethereum NFT market share in just four weeks, regaining dominance after facing stiff competition.
• Community backlash and SEC scrutiny challenge OpenSea’s growth, forcing them to rethink incentives and regulatory compliance strategies.

In less than a month, OpenSea reclaimed its lead in the Ethereum NFT market. Four weeks ago, just 25.5% of the transaction volume; today it has surged to 71.5%. This surge coincided with the planned launch of the SEA token, which was announced on February 13, 2025. However, while these numbers sound promising, OpenSea’s journey has not been entirely smooth.

Opensea’s $SEA Surge: Hype or Power Play?

Opensea just reclaimed 71.5% of Ethereum NFT market share, up from 25.5% in a month. The trigger? The $SEA token announcement.

We’ve seen this before – token speculation drives volume. Daily trades jumped from 6.1K to 14.7K, and volume… pic.twitter.com/FlGBr5OHkm

— Crypto Town Hall (@Crypto_TownHall) February 21, 2025

Volume Explosion, But What’s Driving It?

From an average of $3.47 million to $17.4 million, OpenSea’s daily trading volume has soared following the unveiling of the SEA token plans. From 6,101 to 14,700 daily transactions, the count of daily transactions has also surged drastically.

However, much of this growth has come at the expense of its main competitor, Blur. The platform has seen a decline in volume as users have flocked back to OpenSea.

Still, this surge raises the question: is this an organic growth or merely a temporary effect of OpenSea’s incentive strategy? Although the SEA token and its new ecosystem have attracted a lot of interest, others are dubious that the rise will be sustained over long terms.

OpenSea: XP Rewards and Wash Trading Controversy

OpenSea has faced strong criticism from its community amid the excitement of the volume spike. After several users claimed the system promoted wash trading, the XP rewards program they instituted was suspended. The criticism underlined how some people were merely doing back-and-forth transactions to gather XP without really supporting the ecosystem.

Devin Finzer, CEO of OpenSea, said that they are looking at their incentive plan to increase sustainability. OpenSea is replacing it with a new concept called “XP shipments,” which is meant to emphasize more on devoted users and their actual environmental impacts.

Regulatory Threats from the SEC

If internal challenges weren’t enough, OpenSea also has to deal with regulators. As we previously reported, the US Securities and Exchange Commission (SEC) sent OpenSea a Wells Notice in August 2024. The SEC contended that some NFTs sold on the marketplace might constitute securities, which would have legal consequences.

Though OpenSea has not yet responded formally to this alert, several business participants think the SEC’s action could represent a major danger. Should NFTs be classified as securities, platforms like OpenSea will be subject to even more rules, hence perhaps stifling their expansion.

Can OpenSea Maintain Its NFT Market Dominance?

OpenSea finds a crossroads with all these events. On the one hand, with somewhat remarkable numbers, they have taken control of the Ethereum NFT market. Besides that, they will have great difficulties preserving the sustainability of this increase.

Future performance of OpenSea will be much influenced by its response to community criticism and ability to overcome governmental pressure. Should they strike a right balance between legal compliance, good incentives, and innovation, they could be able to keep their dominance for a longer period.