NFT Marketplaces OpenSea And LooksRare See Revenue And Volume Plummet

CryptoMode NFT Marketplaces Revenue Decline PancakeSwap

After the stellar year 2021 for non-fungible tokens, analysts expected more of the same in 2022. Unfortunately, that may not happen after all, as all significant NFT marketplaces see revenue decrease rapidly. A fascinating trend and one that may warrant caution when making significant investments. 

OpenSea Revenue Drops By Over 53%

The leading NFT marketplace on the market today is still OpenSea. It has the most listings, sales, and overall users of any of the NFT marketplaces. Competing with this behemoth will prove difficult, even if OpenSea has gotten a fair bit of a bad press. Moreover, the platform had to address a bug allowing criminals to steal NFTs from others. 

Even so, OpenSea remains the go-to place for all NFT activities. That is surprising, considering half a dozen NFT marketplaces are available today. That first-mover advantage as a household name continues to pay dividends for the platform, but not necessarily for the users. Token Terminal indicates a 53.7% revenue decline in the past month. Although nearly $200m in monthly revenue remains substantial, it is relatively low than in previous months. 

Moreover, the statistics by DAppRadar confirm an overall downtrend. Users declined by over 15%, as did the number of transactions. The balance in OpenSea smart contracts dropped by over 98%, although that isn’t abnormal whatsoever. Overall, the past month hasn’t been great for the leading NFT marketplace. one can point at the crypto bear market, although there may be NFT fatigue as well. 

LooksRare Loses Traction Quickly

NFT enthusiasts were initially excited about LooksRare. A competitor to OpenSea sharing revenue with token holders can significantly impact the NFT vertical. Unfortunately, LooksRare was also used for wash trading, heavily inflating its trading volume and rewards to $LOOKS holders. All of that has ground to a halt lately, as the marketplace has had less-than-stellar metrics for the past month.

A near 43% decline in active users and over 51% fewer transactions indicates LooskRare isn’t so hot anymore. Furthermore, its volume has decreased by over 88%, signifying the wash trading may have ended. There is still over $410 million in volume, which is good, but it is far lower than OpenSea, nullifying this “competition” among NFT marketplaces.

On the revenue front, LooksRare follows OpenSea, which isn’t promising. In fact, its revenue decline is even worse, dipping by over 82% in the past month. When trading volumes normalize, it is a far less groundbreaking platform than people may have expected. As NFT activities migrate to OpenSea first and foremost, other NFT marketplaces will struggle to compete. 

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