Last year’s NFT gold rush saw OpenSea’s rise to a $13 billion company, but its competitors were increasingly capturing market share.
A new report indicates that the previously monopolistic non-fungible (NFT) token market has moved to an oligopoly.
OpenSea faces stiff competition
According to the latest news Version From Binance’s Market Pulse, NFTs had a poor quarter across the board in Q3 2022. While OpenSea remains the leading exchange, the biggest competitor it currently faces is Magic Eden as Solana NFTs gain momentum.
OpenSea topped the market share by monthly volume in May and has been in gradual decline since then.
The Ethereum-based NFT market has ruled unopposed for the past year. Founded in 2017, the company has grown impressively over the past year amid the NFT boom. but it Starch $300 million in new venture capital led by investment firms Paradigm and Coatue Management, raising its valuation to $13.3 billion in just four years.
However, the report notes that the NFT market as a whole is in transition from OpenSea’s monopoly. Part of this trend can also be attributed to the volume of NFT’s performance for the third quarter, which underperformed significantly compared to the previous two quarters after beating the market in June.
The main indicators in the NFT market
Zooming out, Solana and Ethereum continue to fight for supremacy in the NFT industry although the latter still retains the title of market leader. Solana’s growing momentum has stalled a bit due to frequent network outages as well as a bear market. But it is still visible with several volume rallies recorded in the last month alone. The same cannot be said for Ethereum, as its volume has continued to decline.
However, Ethereum remains the strongest blockchain in terms of NFT sales. It recorded 65% market share at the end of the third quarter. However, it is worth noting that the number is a 16% decrease from the end of the second quarter. On the other hand, Solana’s NFT sales were in an uptrend.
Despite the turbulent market conditions, buyers in the third quarter of the year showed “resilience”. The report said that the measure of unique buyers has halved since hitting its highest level early this year. But since the end of the second quarter, a slight increase in the number of unique buyers has been observed.
About 9.5 million deals were recorded in January of this year, followed by a gradual decline in numbers. However, the number of transactions gained momentum in September, reaching around 7.2 million, after an initial slowdown in July and August, with 5.4 million and 5.1 million, respectively.