OpenSea is the most popular decentralized platform for users who want to trade, buy, sell, and mint nonfungible tokens. OpenSea serves more as an NFT aggregator and gallery. According to Dune Analytics, December 2021 saw $3.25 Billion in volume. The total volume increased by 90,968% from December 2020 to 2021.
OpenSea is no stranger to criticism and contention. However, it has also had its share of pitfalls and perils. Nate Chastain was the former head of product. He used insider information to profit from the platform’s top page NFTs.
The community felt distrustful after Brian Roberts, chief financial officer (CFO), suggested that he might go public. He quickly clarified that OpenSea does not intend to become public any time soon.
OpenSea may be the largest NFT marketplace in terms of transaction volume at the moment, but there will be many competitors looking to challenge the giant by 2022.
These are five NFT marketplaces which could challenge the top contender in the months ahead.
Coinbase appears to lean on centralization elements as the primary driver of mass adoption. Coinbase NFT, Coinbase’s NFT marketplace, is a competitor to OpenSea. According to reports, the waitlist is now at over 1.1 million. This is more than OpenSea’s active user-base.
OpenSea has monthly active traders Source: Dune Analytics
Coinbase NFT’s launch was an indication of the growing value NFTs can capture as digital collectibles continue going mainstream. Coinbase NFT will be a major change in the world of commerce and culture because it is able to understand how NFTs connect commerce and culture. The project has also established partnerships with collections such as World of Women, DeadFellaz, and Lazy Lions.
Although the marketplace is not yet live, the waitlist suggests that many investors are eager to get exposure to the technology or seek alternatives to what they use.
We are proud to announce our partnership and support for the Kings and Queens of the Lions Den. We love @LazyLionsNFT. #ROAR pic.twitter.com/5Od1d77dPm
— Coinbase NFT (@Coinbase_NFT) December 7, 2021
According to Coinbase, Coinbase NFT is peer-to-peer (P2P), with an intuitive design built ontop of a decentralized market.” The product initially follows the ERC-21 and ERC-1155 guidelines, but plans to add support for multi-chains.
Coinbase NFT will be primarily a marketplace but the company hinted that it could also serve to “foster relationships.” Coinbase’s clients trade quarterly $327 billion, which proves that there is sufficient liquidity in circulation.
Coinbase boasts more than volume trading. It also touts its user experience (UX), which is user-friendly and streamlined. OpenSea’s UX/UI design is criticized by many on Twitter, but OpenSea has no barriers to entry.
Contrary to Coinbase NFT’s October launch, FTX marketplace began with a limited collection of Solana-based NFTs and then expanded its range to include those on the Ethereum blockchain. FTX NFTs, unlike OpenSea NFT and Coinbase NFT is not a P2P marketplace. It is centralized and custodial and users’ data is stored and recorded on the network. Users and collectors can forgo ownership in certain senses.
Its status as a central platform means that it tends to give less autonomy to its users and imposes more restrictions due to securities laws. FTX NFTs implement bidding mechanisms, unlike OpenSea which allows users full control over their digital assets until they are sold. Brett Harrison, President of FTX.US, stated in a statement that “By not requiring gasoline for doing things like bids we’re going see a lot less price action and price discovery, and we hope this in general attracts liquidity.”
Because of its law-abiding nature, many Solana NFT owners had to revoke their promised royalties after FTX NFTs said it would no longer support projects that granted such perks.
This was due to US regulatory concerns. The Ethereum network is also checked to ensure that they comply with securities laws.
OpenSea is therefore still valuable as it has a wide range of NFT collections.
Solana nft developers Last week: “We must add royalties to this project” This week, “No royalties.” We must be on FTX
— Ayofinance October 11, 2021 (@Ayofinance1)
Despite minor issues, the marketplace is well-received and has a lower fee structure than its competitor. FTX NFTs charges 2% for fees, Coinbase charges 2.5%.
It doesn’t appear to be hostile to users using non-custodial wallets eventually, but its primary focus remains on accessibility and value.
Rarible had been trading higher monthly volumes than OpenSea long before it reached the top. Rarible, despite opening its platform to the public with the governance token RARI — which OpenSea users had been anticipating for a long time — has struggled to maintain the lead it once held over OpenSea.
The platform’s total volume in November was 4% more than October. It averaged $18.2million. OpenSea’s monthly total volume is much lower than its, but its daily volume is at least five times greater.
Rarible, just like FTX NFTs Marketplace, understands the benefits of multi-chain strategic partnering. Rarible already supports NFTs on Tezos and Flow blockchains and plans to support Polygon and Solana in the near future.
Monthly volume (primary and secondary) of sales. Source: Dune Analytics
Rarible’s decentralized ethos, and multi-chain support for NFTs could make it a serious contender by 2022.
Zora is a champion of Web 3.0, decentralization and transparency. It boasts its permissionless, completely on-chain platform. These principles are popular among decentralized autonomous organisations (DAOs), so the platform is still valuable in historical purchases such as PleasrDAO’s $4 million purchase the original dogeme NFT.
web3 means satisfying >=1 of these criteria: – majority owned/controlled by users – permissionlessly accessible/forkable – censorship [email protected] is open source -> web3 Coinbase wallet is closed -> not [email protected] open NFT auction standards -> web3 OpenSea? nope
— . (@nir_III) December 15, 2021
Zora is a zero-fee organization and focuses most of its efforts to be the foundation permissionless protocol. Many crypto pundits love the idea that creators and artists have more control and ownership of their creations. These are important concerns that could be raised in 2022 and Zora could experience an influx of users.
Magic Eden is the current top NFT marketplace on Solana’s network. According to DappRadar, Magic Eden has been ranked among the top 10 NFT marketplaces since its launch in mid September 2021.
OpenSea has seen a rise in unique wallets and this has made it a formidable competitor. It is important to remember that some users may have more than one wallet address. This could indicate that there are fewer active users.
OpenSea on-chain data. Source: DappRadar
The platform offers a competitive advantage with low transaction fees of 2%. Users can also list for free on the platform, similar to FTX NFTs. The number of transactions on Magic Eden is often twice or more than the transactions that occur on OpenSea, as shown in the below graph.
Magic Eden on-chain data. Source: DappRadar
Although Magic Eden had more transactions than OpenSea, the transaction amount is still lower than OpenSea. DappRadar reports that Magic Eden has collected over 4.5 million transactions in the past 30 days, while OpenSea processed just 1.7 million transactions. However, Magic Eden’s total volume is almost five times greater.
The pace of NFTs is being set, and digital collectibles are becoming more mainstream, 2022 may see a wider demographic who might not be as open to OpenSea. These five NFT marketplaces will be strong contenders for their top spot. They value accessibility, regulation, and better user experiences.
com. You should do your research before making any investment or trading decision.