NFT market changes: from a dominance to a hundred schools of thought contend?

The crypto asset market as a whole has entered a deep bear stage, and the independent sector NFT market is constantly in the news. The NFT trading track has entered many new and old faces, including players in the traditional industry.

On July 12, GameStop, a well-known American video game retailer, officially launched its NFT trading platform GameStopNFT, allowing gamers, creators, collectors and community members to buy, sell and trade NFTs.

GameStop’s entry into the NFT market once again shows the trend of NFTization of game assets. GameStopNFT currently only focuses on the game field, which also shows that NFT transactions are gradually moving from a comprehensive market to a segmented market.

On July 7, the developer of Uniswap, a decentralized trading application for encrypted assets, publicly solicited suggestions for NFT products on social media, which means that the largest homogenized token trading platform on the Ethereum chain has begun to enter the NFT track.

Entering 2022, the market providing NFT transactions is no longer dominated by OpenSea.

According to NFTGO data, as of July 13, the transaction volume of the NFT trading platform x2y2 in the past 30 days was 620 million US dollars, and the transaction scale has surpassed OpenSea’s 496 million US dollars, ranking first in the market. The U.S. dollar was third in volume.

x2y2 is shaking OpenSea’s dominance. Like LooksRare, it is an emerging NFT trading platform that began to challenge OpenSea early this year. They go straight to the pain points of OpenSea’s centralization, high handling fees, and platform revenue that has nothing to do with users. Airdrop platform tokens , low handling fees, and 100% income to feed back users, etc., and began to share the NFT trading market monopolized by OpenSea.

Faced with competitors from all over the world, OpenSea has upgraded its products internally and made up for shortcomings through acquisitions to enhance its competitiveness.

In April of this year, OpenSea acquired the decentralized NFT aggregation protocol Gem; in May of this year, OpenSea allowed users to trade NFTs using payment methods other than cryptocurrencies; on June 15, the platform migrated from the old Wyvern protocol to the new Protocol Seaport to reduce user transaction fees.

The NFT trading market has gradually entered the Red Sea, and there are still platforms that are not afraid of competition, joining the battle from product innovation, market segmentation, etc., in an attempt to take a share of this 100 billion-level market, such as crypto art professional curation platform SuperRare, Duo The chain NFT trading platform Rarible, the NFT batch trading aggregation platform Gem and Genie, the NFT-for-NFT trading platform SudoSwap, etc., together form the current NFT market structure.

This issue of DeFi Honeycomb will sort out the evolution of the NFT trading track and take stock of the important players in this market from the perspective of products.

The road to challenge OpenSea starts from the Token Incentive War

As the leader of the NFT trading market, OpenSea occupied more than 90% of the market share for a long time last year, even though its trading system is unstable, it has suffered hacker attacks, user NFT assets have been stolen, and even scandals such as insider trading have occurred , but when it comes to NFT transactions, people will still choose OpenSea.

At that time, there were too few comparable platforms in the market, and high-quality NFT projects would prefer OpenSea to launch. Although this platform was controversial, users seemed to have no choice.

The turning point probably came in the last month of 2021, when rumors of OpenSea planning an IPO became more and more true, and its newly appointed chief financial officer Brian Roberts believed that the platform was growing so fast that it would be foolish not to go public. Such a statement touches the taboo of the crypto community – a platform that makes money from the decentralized asset market does not issue platform tokens to reward users, but instead wants to take the path of traditional financing, which is very “non-blockchain”, “” Not Web3″.

The users of OpenSea are angry. The accumulated problems of this platform have been re-examined and put on the fire of public opinion. Brian Roberts has to come forward to calm down, claiming that the media reports have misinterpreted his meaning, and whether the IPO will still take into account the opinions of the community .

This time, however, the anger was not spared by some conscientious developers. In January 2022, an NFT trading platform named LooksRare built on Ethereum was born, which specifically airdrops LOOKS tokens for users who have traded on OpenSea, and launched the common crypto asset trading platform in the past. The “trading is mining” game has a “blood-sucking attack” on OpenSea.

In addition to the incentives, LooksRare also has lower transaction fees than OpenSea, charging only 2% per transaction, which is 0.5% lower than its direct competition. In the early days of its launch, the transaction volume of LooksRare surpassed that of OpenSea.

But the good times didn’t last long. In early February, the incentive mechanism launched by LooksRare caused serious brushing problems. Users bought and sold NFTs to obtain LOOKS rewards, and a large number of LOOKS rewards were also thrown into the market, causing the price of the token to increase from 7 dollars all the way down. Later, it was revealed that the team cashed out the fees by pledging the LOOKS held by itself, and the market distrust brought the price of LOOKS to further leak.

With the decline of LOOKS, the popularity of LooksRare also began to decline. Nevertheless, its appearance made the outside world see a possibility: OpenSea is not unchallenged.

When LooksRare’s “transaction mining” mechanism went wrong, another nascent NFT trading platform, x2y2, showed up. In February, the new platform also attracted traffic by means of platform token X2Y2 airdrops and 100% distribution of handling fees to users who pledged X2Y2. However, in terms of incentives, x2y2 did not engage in “mining transactions” from the beginning. It seems to pay more attention to the type and quantity of NFTs on the platform, so it offered the game of “listing NFTs as mining”, choosing to reward those who place orders on the platform NFTs User.

This kind of incentive design allows x2y2 to solve the problem of insufficient number of NFT products in the initial stage, and link the number of rewards to the contribution of users who sell NFTs to the platform. In this way, compared with the extensive incentives of “transaction mining”, “listing on the shelves” “Mining” to a certain extent avoids the problem of excessively fast output of X2Y2, which weakens inflation and selling pressure.

The sudden explosion of LooksRare is more like NFT trading users’ revenge for OpenSea not issuing platform tokens, while x2y2 has made differentiated iterations at the product level of competitors – it supports users to list and buy multiple NFTs in batches, This was a feature that OpenSea didn’t have at the time.

x2y2 also had problems during its development. At that time, some KOLs pointed out that x2y2’s smart contracts had excessive management rights, which caused users to worry about the security of assets on the platform, but soon, the platform also quickly corrected question.

In May of this year, the NFT transaction volume of x2y2 suddenly increased significantly. A closer look reveals that the surge in the platform’s trading volume is related to changes in its incentives. On April 1 this year, it canceled the reward for pending orders and changed it to “transaction mining”. Interestingly, LooksRare also changed its incentive strategy on April 20, and allocated some of the revenue from the original “transaction mining” to the “NFT listing reward”.

The change in incentives does benefit x2y2. According to NFTGO data, as of July 13, the transaction volume of the NFT trading market x2y2 in the past 7 days was 620 million US dollars, and the transaction scale has surpassed OpenSea’s 496 million US dollars, ranking first in the NFT trading market. The volume ranks third.

NFT market changes: from a dominance to a hundred schools of thought contend?

The transaction volume of x2y2 in the past 30 days is about 158 ​​million US dollars

Multi-chain coexistence provides new options for NFT transactions

Token incentives have always been the most effective way for decentralized platforms to combat centralized platforms, because the encrypted asset trading market on the chain provides a channel for Tokens to “convert to wealth”. With this move, LooksRare and x2y2 sucked a wave of traffic from OpenSea, which was sticking to compliance and seeking to go public.

However, these competitions only exist in the Ethereum ecosystem, that is, the users of NFTs and services provided by the platform belong to the Ethereum ecosystem. The most prominent feature of this ecological NFT is that “well-known NFTs are expensive, unknown NFTs are worthless and have poor liquidity”. The high price is also determined by the market value of ETH itself. Most of the NFTs generated on the Ethereum network use ETH. For payment, in addition to the cost of purchasing NFT itself, users also need to use ETH to pay the gas fee on the chain and the handling fee specified by the trading platform. The price of ETH itself is relatively high, and users seem to have entered a “no choice” situation again.

The multi-chain coexistence of the blockchain public chain market has broken this situation. NFT trading platform applications have appeared on comprehensive public chains such as Solana, BSC, and Polygon. In addition, there are also special support for NFT issuance and trading. Flow, ImmutebleX, etc.

When NFTs on the Ethereum network become more and more expensive and transaction costs increase, the NFT markets on these public chains provide users with cost-effective options. At least, the low transaction fees on the chain are enough to attract users to pick and choose , choose a choice.

In the second half of this year, when the overall crypto asset market declined, the NFT market on other chains began to explode. According to Cryptoslam, as of July 13, in the past 30 days, the NFT transaction volume on the Solana chain was 72 million US dollars, and 125,000 users participated. This data ranks second in the NFT market of many public chains. The volume is already 12.5% ​​of Ethereum.

NFT market changes: from a dominance to a hundred schools of thought contend?

The NFT transaction volume on the Solana chain is second only to Ethereum, and the data comes from Cryptoslam

Among them, the Magic Eden NFT trading market on the Solana chain is the most prominent.

According to SolanaFloor data, as of July 13, Magic Eden’s historical total transaction volume was $690 million, and the 24-hour transaction volume was $2.086 million, making it the largest NFT trading market on the Solana chain. OpenSea has also deployed a marketplace on the Solana chain, and the platform’s 24-hour transaction volume is only $10,000.

Magic Eden’s data performance has attracted the attention of capital. On June 22, the platform closed a $130 million Series B round at a $1.6 billion valuation.

Magic Eden, born in September 2021, mainly provides NFT casting and trading services for users in the Solana chain ecosystem. With continuous development, it has gradually become an NFT comprehensive service platform on the chain, with functions including NFT issuance, data analysis, asset management, etc.

Magic Eden has also continued to improve its product experience. In addition to providing basic functions such as NFT casting and trading, it has also carried out product segmentation, such as building the NFT initial release platform Launchpad – providing creators with technical and marketing support tool components, enabling It becomes easier for creators to start their own new projects; EdenGame, a dedicated section for game NFT assets, has been added – providing a one-stop platform for game developers and gamers through which in-game NFT assets can be traded.

Compared with OpenSea and Ethereum, Magic Eden is more closely integrated with the Solana chain. It is completely built on the chain. It started from NFT transactions and gradually evolved into a one-stop NFT platform that integrates transactions, distribution, and game entry. , Asset management is equal to one.

This is most evident in Magic Eden by constantly polishing the product to stand out from the competitive NFT exchange market.

Emerging competitors cut into the track from the trading experience

For NFT trading platforms, issuance, subdivision of NFT scenarios, and asset management are all important functions, but trading is always the core. If a platform wants to win users, incentives are the way to obtain user traffic, and experience is the fundamental to retain users. Many emerging platforms have noticed the pain points of the NFT trading market and began to provide solutions to these pain points one by one, such as realizing batch transactions, such as reducing transaction friction costs, etc.

With the increase of NFT trading platforms and NFT projects, users find that when they want to trade multiple NFTs on a certain platform, they need to search one by one, and then check the quotation. If the price is ideal, they need to trade one by one, and each time Transactions require paying gas, which is laborious and expensive, especially on Ethereum.

The comprehensive NFT trading platform is more suitable for users who have a single NFT transaction requirement, and cannot meet the batch transaction requirements. Therefore, the NFT aggregated trading platform appeared.

On the NFT aggregator, users can browse and purchase NFTs on multiple platforms. At the same time, the aggregator also provides various functions such as displaying floor prices, cross-platform price comparison, and supporting multiple payment methods. They are becoming the traffic portal of NFT trading platforms.

The NFT aggregation trading platform can help users purchase multiple NFTs at the same time in one transaction, centralize the originally scattered NFT liquidity, reduce users’ transaction costs, and meet users’ bulk purchase needs. They are more like “NFT trading market. 1inch”.

In the NFT aggregation trading track, the representative products are Genie and Gem.


Genie is the first platform to deploy NFT aggregator applications. It was officially launched in November 2021 and mainly supports the function of bulk purchase and sale of NFT assets. On June 22 this year, Uniswap Labs announced the acquisition of Genie.

Currently, Genie has integrated multiple NFT trading markets such as OpenSea, Rarible, LooksRare, x2y2, etc. Users can purchase multiple NFTs from multiple markets in a single transaction, and reduce the gas fee through the Genie Swap aggregation trading tool.

The Genie homepage will display the trending rankings of NFT projects. The overall interface of Genie Swap is simple. The left side is the payment box (sold NFTs), and the right side is the receiving box (purchased NFTs). Both sides can be added to sell and buy respectively. For multiple NFTs, the difference is made up by ETH.


Gem is an NFT aggregation trading platform developed based on Ethereum. It launched its beta version on December 18 last year. On April 25, OpenSea announced the acquisition of Gem, which will continue to operate as an independent brand after the acquisition.

Currently, Gem aggregates NFT pending order information in OpenSea, LooksRare, Rarbible, x2y2 and other markets. It hopes to integrate pending order information in all NFT markets, so that users do not need to jump to other NFT platforms one by one to compare prices and trade.

In addition, compared with Genie only using ETH as the payment method, Gem has made more optimization and upgrades in the payment method, and supports users to use a variety of Tokens for buying and selling NFTs, and even supports paying with a combination of Tokens at the same time. For example, when a user buys NFT, the ETH balance in the wallet is insufficient, and the user can pay with USDC, UNI and other Ethereum standard Token combinations.

In addition, Gem integrates richer data display functions, including multiple data of each NFT (price trend, NFT attribute characteristics, etc.), users can browse and purchase NFTs on various mainstream trading platforms in one stop on Gem.

In addition to the question of whether it can be bought and sold in batches, the biggest problem currently facing NFT, a non-fungible token, is liquidity. Compared with homogeneous encrypted assets such as BTC and ETH, the liquidity of NFT is much worse. The daily activity of OpenSea when the market is down can be seen.

Transaction friction is one of the reasons for the poor liquidity of NFTs. Non-homogenized NFTs cannot convert A to B, and the conversion must be completed through an intermediate Token. For example, users can directly exchange BTC for ETH according to the current exchange rate, but cannot directly exchange a “pixel man” in the CrytoPunks series for a “bored ape” in the Bored Ape Yacht Club series, because the two are fundamentally different things , each NFT is unique, the price is different, and there is no market exchange rate for each other.

Developers who hit this pain point have created a solution for a peer-to-peer NFT trading platform, and developed a trading model of “easy NFT with NFT”. The representative applications are Sudoswap and NFT Trader.


Sudoswap supports mutual transactions between NFT assets, that is, users can directly exchange their own NFTs with other people’s NFTs through the platform. After both parties accept the transaction, the NFT assets will be automatically transferred from the user’s wallet. During the transaction process, only spending on the chain is required. Gas fee.

On July 6, Sudoswap announced the launch of the NFT AMM (Automated Market Maker) protocol sudoAMM, through which users can create an NFT liquidity pool, provide liquidity for the liquidity pool NFT-Token, and receive transaction fee rewards. This protocol enables NFT trading users to enjoy lower slippage when exchanging NFTs and tokens.

Currently, the types and quantities of tradable NFTs provided by Sudoswap are relatively small, and only certain types of NFTs are supported.

NFT Trader

NFT Trader also supports peer-to-peer exchange between NFT buyers and sellers. Before the transaction is confirmed by both parties, the user’s NFT assets will be temporarily hosted in the smart contract deployed by the platform.

For example, when Xiao Ming uses the NFT Trader platform, he must first determine the type of NFT he wants to receive, and confirm that the NFT provided by Xiao Li is exactly what he needs; then, Xiao Ming transfers his NFT assets to the smart contract of NFT Trader At this time, the smart contract will generate a link and send it to him, this link contains all the information that Xiao Li needs to complete the NFT exchange; finally, Xiao Ming sends the link to Xiao Li, Xiao Li confirms the transaction, and the NFT assets will be automatically transferred to Xiao Ming.

In the process of “Easy to NFT with NFT”, NFT Trader acts as a trusted third party with smart contracts to avoid invalid transactions and fraudulent transactions between users. The user who initiated the exchange can withdraw their NFT assets at any time on NFT Trader if the counterparty defrauds or terminates the transaction.

At present, the peer-to-peer trading platform is still in the early stage of development, and the products are not mature enough compared to the mainstream NFT trading market. However, they provide a new form of flow between NFTs.

In any case, in the NFT trading platform, OpenSea is no longer the dominant player, and competition is bringing vitality to this market. This vitality is not only the transaction volume supported by traffic, but more importantly, the trading products are competing Iterate step by step.

Posted by:CoinYuppie,Reprinted with attribution to:
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.

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