OpenSea Reclaims Dominance in Ethereum NFT Market

OpenSea, a leading Ethereum NFT marketplace, has made a significant comeback, regaining 71.5% of the market share in the past week. This surge follows the platform’s announcement of its native token, SEA, on February 13.

Market Share and Trading Volume

Just four weeks ago, OpenSea’s market share stood at 25.5%, with Blur dominating the space. However, since the token announcement, OpenSea’s daily trading volume has skyrocketed, averaging $17.4 million. This represents a nearly five-fold increase from its pre-announcement average of $3.47 million.

The number of daily transactions has also more than doubled, jumping from 6,100 to 14,700 trades. The bulk of this growth occurred in the past week, as OpenSea’s market share spiked from 42.4% to 71.5%, largely at the expense of Blur.

Incentive Rollout and Criticism

Despite the momentum, OpenSea has encountered obstacles in its incentive rollout. The platform recently suspended its XP-based incentives system after users accused it of promoting wash trading and prioritizing fee production over actual ecosystem engagement.

“Liquidity incentives are still crucial, but we’re reassessing our strategy,” said Devin Finzer, CEO of OpenSea.

New Rewards Model

In place of the XP system, OpenSea has introduced “XP shipments,” a new rewards model targeting early adopters of its OS2 marketplace. Users who provided feedback via Discord have already received the first batch of XP rewards, while a second round is being distributed to those who have purchased NFTs on OS2.

Additionally, XP multipliers are available for those who’ve held top-volume NFT collections for more than three months.

SEA Token Airdrop

Although information about the SEA token is still limited, OpenSea has stated that U.S. users are eligible for the airdrop. Allocation will be based on past platform activity, which could potentially compensate traders who were active during the 2021 NFT bull run.

For the latest updates on the cryptocurrency and NFT market, visit Global Crypto News.

Tips for NFT Investors:

  • Stay informed about market trends and updates from leading platforms like OpenSea.
  • Keep an eye on new rewards models and incentives that can benefit your investment strategy.
  • Be cautious of potential risks, such as wash trading and phishing scams.
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