Over 1 Million Users – OpenSea NFT MarketPlace

January 15, 2022 5:54 pm

OpenSea, the leading NFT marketplace as of today, has announced that they have reached a critical milestone of having more than 1 million users who have made a transaction on their platform.

What this means is that each one of these users have, in some shape or form, bought or sold a non-fungible token.

More recent data from OpenSea shows that the growth of NFT transactions is not slowing down any time soon and is on track break record monthly transaction volumes.

This type of exponential growth shows the universal appeal of NFTs as an industry both from a utility perspective as well as a form of alternative investment.

That being said, there is still criticism as the infrastructure needed to support this marketplace is not growing fast enough to meet the overwhelming demand.

There is demand to make the marketplace easier for people new to NFTs and to improve customer support.

Yahoo Finance reports:

In order to address these issues,¬†OpenSea¬†recently¬†raised $300m¬†in funding to improve its customer service and remove barriers of entry for newcomers ‚Äď which was again met with opposition from the space.

The negative sentiment surrounding OpenSea was further compounded when challenger marketplace LooksRare embraced the flourishing Web3 environment and launched with appealing participation rewards and incentives for using the platform.

The emergence of NFT marketplaces from crypto exchanges including Coinbase, FTX, Binance and the Gemini-owned Nifty Gateway will also continue to pose a challenge to OpenSea’s market dominance in 2022.

Although OpenSea is currently the largest and leading marketplace for NFTs,  there are several emerging marketplaces that are challenging that position.

LooksRare, a new marketplace for Ethereum NFTs, is looking to target OpenSea’s active customers by actually giving them free tokens.

These tokens are being released as a type of an event called an “airdrop” which is when tokens are distributed to users provided that they fall under certain criteria such having bought a certain amount of NFTs through the marketplace.

The airdrop was quite successful and LooksRare was able to lead the Ethereum NFT marketplace in transaction volume for a period of time.

Additionally, the airdrop sparked a lot of interest from the general public as awareness of the marketplace as thousands of people were made aware in the span of a few days.

The changes within the NFT marketplace industry happen frequently due to how new it is and events like this show that disruption can happen rapidly.

Airdrops are easy to do because tokens can essentially be created out of thin air which means that it didn’t cost the company anything.

In essence, it amounted to free advertising which made the recent move from LooksRare very efficient and still be able to provide value to receivers of the token if the market decides to place value to them in the future.

New companies will likely attempt to try the same thing in order to gain more customers and take part in OpenSea’s current success in the NFT marketplace.

As a result, it is expected that there will be many other companies looking to disrupt the industry later in 2022 and that OpenSea’s current market dominance is far from guaranteed in the coming years.

 

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