Research Summary
The report discusses the growth and resilience of the NFT marketplace, the competitive landscape, and the strategies of key players like OpenSea, Blur, LooksRare, and X2Y2. It also highlights the role of individual market makers, the impact of tokenomics adjustments, and the emergence of multichain marketplaces.
Key Takeaways
Resilience and Growth of the NFT Marketplace
- Market Resilience: Despite challenging market conditions, no major NFT trading markets have collapsed, demonstrating the resilience of the NFT marketplace.
- Trading Volume Growth: Mainstream NFT marketplaces have seen four consecutive weeks of growth in trading volume, nearly doubling in this period. This growth surpasses the rise in the value of ETH, indicating an increase in the volume of ETH transactions.
Competitive Landscape and Strategies
- OpenSea’s Strategic Adjustment: OpenSea announced a 50% staff reduction to rebuild its operational culture, products, and technology in response to declining market share and revenue. However, criticisms include difficulties in using the product, slow updates, and disregard for the community’s voice.
- Blur’s Competitive Edge: Blur’s rebound momentum is stronger than OpenSea’s during the warming phase of the Crypto market. Blur’s core advantage lies in individual market makers, including NFT OG players, top holders of blue-chip NFTs, and NFT KOLs, who provide liquidity and influence the community.
Impact of Tokenomics Adjustments
- LooksRare’s Tokenomics Adjustment: LooksRare ended its trading mining model and adjusted its tokenomics, leading to a decline in fake volume but a limited impact on real volume. The number of traders on LooksRare remained stable, indicating a loyal user base or team participation in trading activities.
- X2Y2’s Token Emission Reduction: X2Y2 announced a 50% reduction in daily token emission starting from November 7th and focuses on external expansion based on a full NFT financial ecosystem. X2Y2’s tokenomics are expected to undergo more adjustments in the future as it aims to build a broader NFT ecosystem.
Emergence of Multichain Marketplaces
- OKX NFT Marketplace: OKX NFT Marketplace supports 17 public blockchains and aggregates liquidity from 6 major trading markets, with a daily aggregation volume between $7 million to $15 million.
- Magic Eden’s Multichain Moves: Magic Eden has made significant moves in the multichain market, partnering with Helio, launching a creator fund on Polygon, and introducing Solana cNFTs. However, its decision to suspend BRC-20 trading resulted in a drop in its market share.
Actionable Insights
- Investigate the Potential of Individual Market Makers: The report highlights the significant role of individual market makers in providing liquidity and influencing the community. This suggests the need to explore the potential of individual market makers in enhancing the efficiency of NFT transactions and generating more income for creators.
- Consider the Impact of Tokenomics Adjustments: The report shows that tokenomics adjustments can have a significant impact on trading volumes and user retention. Therefore, it is crucial to consider the potential effects of such adjustments when developing strategies for NFT marketplaces.
- Explore the Opportunities in Multichain Marketplaces: The report indicates the emergence and growth of multichain marketplaces like OKX NFT Marketplace and Magic Eden. This suggests the need to explore the opportunities presented by these platforms, including partnerships and liquidity aggregation.
