- OpenSea is considered the biggest NFT marketplace to this date.
- New platforms are surfacing in the market to increase the competition.
- Magic Eden remains the biggest NFT platform on the Solana blockchain.
Increasing Competitors in NFT Sector
OpenSea has maintained its position as the biggest NFT marketplace since its inception in December 2017. But the latest report by DappRadar indicates that other platforms are emerging in the sector to eliminate the dominance. X2Y2, an Ethereum-based platform, and Solana’s Magic Eden have increased their market share during recent times.
Currently, OpenSea has a market share of 47.8%, more than Magic Eden (9.4%) and X2Y2’s (27.7%) combined. Immutable X Market, CryptoPunks, BlocktoBay and more hold a nominal percent in the space. This indicates that user engagement with the NFT sector has increased recently.
X2Y2 has gained 8.4% market share since August 2022. The platform announced NFT loans which allow the users to borrow multiple loans for multiple duration. The DeFi sector currently has a Total Value Locked at $55 Billion at the time of writing. The space peaked during November 2021, when the TVL reached around $180 Billion.
According to the DappRadar report, zero NFT royalties had given rise to conflict in the sector. Yuga Labs collected $147 Million in royalties through BAYC, MAYC and Otherside. Gary Vee’s Vee Friends collected $21 Million, while CryptoPunks didn’t make the cut to the top 10, as the collection does not charge any royalties on secondary sales.
OpenSea saw its royalty percent increase by 17% in a year. Royalty free movement on the Solana blockchain forced Magic Eden to add optional royalties on the platform. The announcement has helped them to remain the dominating force on Solana and holds over 90% market share in the ecosystem.
Crypto market has gone through a long depressing period following the uncertain events in the LUNA ecosystem. The fall was so heavy that it created a death spiral in the sector. Companies like Three Arrows Capital (3AC), Celsius and Voyager had to take the biggest blow as they were left hanging with the options to file for bankruptcy.
The NFT sector has lost a majority of value during crypto winter. The sector peaked at trading volume over $17 Billion during January 2022 to around $450 in October 2022. BAYC, MAYC, CryptoPunks and more are still the fan favorite collections to this date.
Everyday, the myth about NFTs that they are nothing more than an image persisting on blockchain. They are not. As of now, several organizations are using them in their supply chains, offering royalties to holders, allowing them as a ticket to exclusive events and more.
Source: https://www.thecoinrepublic.com/2022/11/05/opensea-remains-the-dominant-force-in-nft-space/