Due to decreased trade volumes and increasing competition, OpenSea is contemplating mergers and collaborations.
During this turbulent time, the non-fungible token (NFT) marketplace OpenSea—which was previously worth $13.3 billion—is going through a period of transformation. Even if OpenSea’s trade volume and market share have taken a nosedive, CEO Devin Finzer is still taking a strategic approach towards possible mergers and collaborations.
When January 2022 rolled around, OpenSea had captured around 90% of the NFT market. But things have changed dramatically in the last year, with Dune Analytics reporting a 96% drop in the company’s monthly trading volume to $171 million. This fall is reflective of the general instability seen by the NFT market after its 2021 high.
Blur and other new entrants have significantly weakened OpenSea’s market dominance. Despite having more users overall, OpenSea’s daily trade volume is far lower than Blur’s, according to Dune Analytics. Blur was able to quickly acquire a significant portion of the market because to its aggressive marketing tactics, which included airdrops of its token.
Finzer emphasized OpenSea’s receptivity to mergers and strategic alliances in his interview with DL News. The firm is not in the market for a buyer at this time, but it is receptive to options that fit in with its long-term plans. This attitude is typical of the cryptocurrency industry as a whole, since firms often investigate mergers and acquisitions when the market is going through a transformation.
The fact that OpenSea has acquired Gem, Dharma, and Mintdrop in the past demonstrates that it is serious about talent when making acquisitions. The capabilities of OpenSea have been enhanced by these acquisitions, especially in the areas of crypto wallets and NFT aggregation.
Additionally, the business has collaborated with a number of sectors in an effort to broaden the use of NFTs. Recent discussions between Finzer and executives from luxury brands, as well as his attendance at Paris Fashion Week events, highlight OpenSea’s attempts to incorporate NFTs into several industries, including the fashion and entertainment industries. Coincident with the growing interest of businesses in digital artifacts and experiences, there is a push towards wider use of NFTs.
Even if there are obstacles in the industry, OpenSea will not waver from its goal of creating a secure and easy-to-use NFT marketplace. As evidence of its dedication to customer safety and regulatory compliance, the firm is actively working to remove fraudulent or problematic collections from its platform.
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