LooksRare on Track to Overtake OpenSea in Market Share

A new non-fungible token (NFT) marketplace LooksRare launched with a bang last week, transacting over $1 billion in sales after debuting only on January 10. Total sales figures are now more than 40 percent of leading NFT platform OpenSea’s entire sales volume for the past week, according to DappRadar. Interestingly, the latest NFT platform LooksRare achieved such a large sales volume with only a fraction of the users of OpenSea. For instance, on January 13, LooksRare’s sales volumes were more than five times higher than OpenSea, yet it did so with less than 3,000 users, compared to OpenSea’s 70,000. The platform’s incentive structure reveals how this has been possible. As part of the launch, LooksRare offered a free airdrop of LOOKS tokens to OpenSea users who transacted at least 3 ETH worth about $9,630 on the marketplace between June 16 and December 16, 2021. This tactic is known as a ‘vampire attack’ when one platform uses incentives to lure their top customers. LooksRare is the second platform to have utilized this tactic against OpenSea, the first being Infinity in October last year. The latest NFT platform arrives at a time of OpenSea’s continual success, but also frustration across the NFT community. For instance, OpenSea has been facing technical issues lately, including a period of extended downtime which CEO Devin Finzer described as ‘unacceptable.’ He further assured that the NFT platform will ramp up the hiring of engineers and customer service employees. I know how impactful outages are to the creators and communities who rely on OpenSea, and this morning’s extended outage was unacceptable. Here’s what happened, and what we’re doing to improve – fast: https://t.co/zo2eCLEBrU — Devin Finzer (dfinzer.eth) (@dfinzer) January 10, 2022 Despite this, OpenSea is currently on track for its best month to date in Ethereum trading volume. Currently, the platform’s ETH trading volume sits at $2.27 billion already, only one-third of the way into the month. Meanwhile, the best month to date was August 2021 with nearly $3.43 billion in ETH trading volume. The NFT market overall surged to more than $22 billion worth of trading volume in 2021, according to data from DappRadar. OpenSea led the market share with more than $15 billion of trading volume in 2021, according to data from Dune Analytics.

The post LooksRare on Track to Overtake OpenSea in Market Share appeared first on Cryptoknowmics-Crypto News and Media Platform.

Source: https://www.cryptoknowmics.com/news/looksrare-on-track-to-overtake-opensea-in-market-share/