How can a rising star in the NFT trading market surpass OpenSea?

Until the end of 2021, OpenSea has been the monopoly of the NFT trading market. But in early 2022, with the launch of LooksRare in January 2022 and X2Y2 in February 2022, the dominance of the OpenSea family gradually collapsed. New competitors invigorate the relationship between NFT users and NFT collectibles, stimulating user transactions by designing new features and platform incentives.

The Footprint chart shows the daily volume (USD) of each NFT exchange market. We can see that so far, the volatility of the NFT trading market this year has been very frequent and obvious.

How can a rising star in the NFT trading market surpass OpenSea?

Footprint Analytics – Market Share of OpenSea & X2Y2 & LooksRare Volume

LooksRare has gained a growing market share since its launch, but after the X2Y2 debut, LooksRare migrated a portion of its market share to X2Y2, due to X2Y2’s better trading conditions and novelty to its native X2Y2 token proposal. Since mid-May, X2Y2 has gained a larger market share than OpenSea in terms of transaction volume. The market share of X2Y2’s trading volume now exceeds 50%. This makes one wonder:

  • Where do these volumes come from?
  • How are the trades performed by these new marketplace platforms different?
  • What does it mean for more and more platforms to share the cake of the NFT trading market, and what can investors get from it?

What the entry of new players means for the NFT exchange battle

Since the platform’s launch, LooksRare and X2Y2 have taken the same approach to acquiring users from OpenSea — airdropping tokens to OpenSea’s active users. This tactic, known as a “vampire attack,” aims to provide financial benefits to precise users by airdropping the platform’s native tokens.

But these two new platforms are not a simple “copy and paste” of OpenSea’s modes of operation and functionality. The table below shows what new features they have introduced in addition to their native token offering.

How can a rising star in the NFT trading market surpass OpenSea?

Source: Official Website

LooksRare and X2Y2 have new features that differentiate them in the market, such as bulk buying (shopping cart) and lower handling fees. The platform’s token rewards also provide token holders with an additional revenue stream, entitlement to a portion of the revenue generated by the platform.

Transactions: Number of users, transaction volume and average transaction value

The figure below is a comparison of the number of users of the three platforms over a period of time. It can be seen that the new platform was attractive for a while when it was first launched, but the dominant position is still OpenSea. From the chart of daily active users below, it can be seen that see. Its number of daily active users is 8 times higher than the second-placed X2Y2.

How can a rising star in the NFT trading market surpass OpenSea?

Footprint Analytics – OpenSea & LooksRare & X2Y2 Daily Active User

Transaction volume usually reflects the number of users, and Opensea still dominates this metric. The Footprint Analytics chart below shows us similar data, with OpenSea seeing 8x the average transaction volume of the second-place finisher.

How can a rising star in the NFT trading market surpass OpenSea?

Footprint Analytics – Number of OpenSea & LooksRare & X2Y2 Transactions

From the figure below, we can clearly see that OpenSea has the largest transaction volume and number of users, far ahead of X2Y2, which is in second place. However, if we look closely at the average price per transaction, we see that LooksRare and X2Y2 have a higher average transaction value than OpenSea .

How can a rising star in the NFT trading market surpass OpenSea?

Footprint Analytics – Average Daily Trading Volume of OpenSea & Looksrare & X2Y2

OpenSea trades more, but its competitors trade more. Since May, OpenSea has seen an average transaction value of $260. High average transaction prices and a growing user base make X2Y2 the #1 market by transaction value, as shown in the chart at the beginning of this article.

Where are the top NFTs traded?

The pie chart below is the trading situation of 4 “blue chip” projects on the NFT exchange market. From these graphs, we can see how the transactions of these “blue chip” projects are distributed among OpenSea, LooksRare, X2Y2 and other markets.

How can a rising star in the NFT trading market surpass OpenSea?

Meebits transaction distribution, last 30 days – source: Footprint Analytics

How can a rising star in the NFT trading market surpass OpenSea?

BAYC transaction distribution, last 30 days – source: Footprint Analytics

How can a rising star in the NFT trading market surpass OpenSea?

MAYC transaction distribution, last 30 days – source: Footprint Analytics

How can a rising star in the NFT trading market surpass OpenSea?

Otherdeed transaction distribution, last 30 days – source: Footprint Analytics

Based on the information above, we have listed some of the main reasons why users choose to trade NFTs on X2Y2:

  • Fewer fees are charged when transacting, and it is more profitable for sellers to use X2Y2, especially when selling higher-value NFTs, the platform charges less.
  • Shopping cart functionality (bulk transactions) makes buying easier for buyers. Buyers can select all NFTs at once for checkout. Multiple NFTs can be purchased in one transaction, which also helps buyers save on gas fees. 
  • Rewards in the X2Y2 native token are distributed among buyers and sellers, and this reward model creates a virtuous cycle of user growth.

These benefits are a good player in promoting small traders (items with low transaction value) to trade with X2Y2. The increase in transaction volume and the number of transaction users will make X2Y2’s native token a good investment direction. The native token of X2Y2 can also gain the attention of the NFT trading market without being used to purchase specific collections.

How can a rising star in the NFT trading market surpass OpenSea?

Footprint Analytics – Volume of BAYC/MAYC/Meebits/Otherdeed in Different Marketplace(Last 30 Days)

Summary (TL;DR):

Combining the information in the above chart, we can understand that X2Y2, with its consistently high transaction volume, is already the leading market for blue-chip NFT collections. Smart NFT trading users know that preferring NFT trading markets with lower transaction fees as much as possible can save a lot of money.

Because X2Y2’s tokens entitle users who hold tokens to a portion of the revenue generated by the platform. Therefore, buying the native tokens of the exchange market is also a reasonable investment strategy.

This article is contributed by the  Footprint Analytics community

The above content is only personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious misunderstandings or data errors, feedback is welcome.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-can-a-rising-star-in-the-nft-trading-market-surpass-opensea-2/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-08-13 10:33
Next 2022-08-13 10:34

Related articles