Research Summary
The report provides an in-depth analysis of the current trends in the NFT market, focusing on the performance of various platforms such as OpenSea, Blur, Tensor HQ, SuperRare, and Rarible. It also discusses the impact of blockchain technology on these platforms, particularly Ethereum, Solana, and Bitcoin.
Key Takeaways
Shift in NFT Market Leadership
- Blur’s Dominance: Blur has overtaken OpenSea as the leading NFT marketplace on Ethereum, capturing 79% of the market share. OpenSea’s share has dwindled to less than 17%.
- OpenSea’s Strategy: Despite losing market share, OpenSea is banking on its non-$ results, such as the number of collections sold and unique buyer wallets, and the upcoming 2.0 version of their marketplace to regain its position.
Emergence of Compressed NFTs
- Tensor HQ’s Innovation: Tensor HQ has disrupted the NFT market on Solana by introducing compressed NFTs (cNFTs), which now account for up to 65% of the platform’s weekly sales.
- Democratization of NFTs: The affordability of cNFTs, coupled with Solana’s low transaction fees, is making NFTs more accessible to a wider audience.
Artificial Intelligence in Art Marketplaces
- SuperRare’s Success: SuperRare, one of the oldest art marketplaces on Ethereum, has facilitated over $300M of sales since its launch in 2018. A.I. generated artwork has been a dominant theme on the platform.
- Botto’s Popularity: Botto, a decentralized autonomous artist that uses A.I. to create artwork, has been the top-selling artist on SuperRare over the past month.
Marketplace-as-a-Service Model
- RaribleX’s Growth: Rarible introduced RaribleX, a product that allows businesses to quickly set up an NFT marketplace. The product brought 100% QoQ revenue growth in Q4 2023, with projected revenue of $6M in 2024.
- Market Share: RaribleX leads the marketplace-as-a-service vertical with over 70% market share, measured by combined gross merchandise value (GMV) across competitors.
Actionable Insights
- Monitor Blur’s Performance: Given Blur’s current dominance in the NFT market on Ethereum, it would be prudent to keep a close eye on its performance and strategies.
- Explore cNFTs: The rise of cNFTs on Tensor HQ’s platform indicates a potential shift in the NFT market. Further research into this trend could provide valuable insights.
- Investigate A.I. in Art: The success of A.I. generated artwork on SuperRare suggests that this could be a significant trend in the art marketplace. Further investigation into the use of A.I. in art creation could be beneficial.
- Consider Marketplace-as-a-Service Models: The success of RaribleX indicates the potential of the marketplace-as-a-service model in the NFT space. Businesses looking to enter the NFT market could consider this model.
