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    Can OpenSea Regain Dominance in the NFT Market Despite Challenges?

    The recent emergence of the NFT marketplace, Blur, has disrupted the once-dominant OpenSea, but the latter seems to be staging a comeback, albeit gradually. According to data from Dune Analytics compiled by sealaunch.xyz, the number of unique users on OpenSea has shown an increase since plummeting in mid-February.

    Meanwhile, Blur has seen a significant drop in the average sale size per user after the airdrop. Since the event, the trading volume of major collections such as CryptoPunks, BAYC, Otherdeed, MAYC, Meebits, Moonbirds, CloneX, and Doodles has decreased on Blur, while it has increased on OpenSea.

    To counter Blur’s growth, OpenSea introduced a policy whereby NFT creators cannot earn royalties on both Blur and OpenSea simultaneously. However, Blur attempted to evade this blocklist by developing a new marketplace on OpenSea’s Seaport protocol, allowing creators to receive full royalties on both platforms. In response, OpenSea unveiled collections in November that sought enforced royalties and blocked marketplaces that did not fully honor them.

    Although Blur’s trading volume reached over $1 billion in February, the surge was mainly due to market manipulation by a small number of whales flipping NFTs back and forth to accumulate BLUR tokens via the firm’s incentives scheme. Cryptoslam, a platform for tracking NFT sales, has announced it would remove $577 million worth of Blur trades from its data, citing “market manipulation.” It further revealed that 80.5% of Blur’s sales volume since February 14 has been wash trading, while only 2.6% of OpenSea’s sales volume was wash trading during the same period.

    Despite the challenges, OpenSea seems to be recovering and regaining its former dominance in the NFT market. As the trading volume of major collections increases on OpenSea, its percentage of unique users is also showing an uptick. While Blur may have disrupted the market temporarily, OpenSea’s response to the threat shows that it is willing to adapt and innovate to maintain its position as a leader in the NFT space.

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