Reflections on a 90% Decline in Trading Volume: NFT Market Leader OpenSea Launches OS2 and Announces the Upcoming Release of Token $SEA
As the biggest winner during the NFT boom in 2021, the NFT market leader OpenSea now faces the challenge of declining trading volume. In an effort to reverse the downward trend, the platform has announced the launch of OS2 (OpenSea V2) and revealed an airdrop plan for the $SEA token, hoping to regain its market influence.
**OpenSea Seeks Solutions Amidst NFT Trading Slump**
OpenSea announced today that it has made significant updates to its website interface, launching the “OS2 Beta,” which is described as a “completely reimagined NFT trading platform designed for collectors and professionals.”
At the same time, the platform will expand support for over ten blockchains, including Berachain and Soneium, enabling seamless cross-chain NFT trading, such as purchasing NFTs on Solana using non-Solana payment methods. Additionally, OpenSea has reduced marketplace transaction fees to 0.5% and eliminated Swap fees in the OS2 Open Beta in an attempt to attract users back with more favorable rates. At the end of the announcement, the team also hinted at the upcoming release of the $SEA token and airdrop reward measures for both new and existing users, with more details to be provided later.
**The Glory Days of the NFT Market**
As an early unicorn in the NFT market, OpenSea achieved a peak trading volume of $476 million in a single day during the Otherdeed land sales for Bored Ape Yacht Club (BAYC) in May 2022. However, the platform’s trading volume has since declined by 90%, with recent daily trading volume dropping to just $4 million.
OpenSea’s monthly trading volume has been in a state of stagnation throughout 2024.
Data from Dune shows that in January 2022, OpenSea recorded over 5 million monthly NFT transactions, but by January of this year, the transaction volume had plummeted by 80%. In terms of royalty income, the company recorded an astonishing $268 million in January 2022, but last month, its royalty income was less than $4 million, shrinking by more than 98%.
**Regulatory Pressure and Fierce Competition: OpenSea’s Challenging Path**
In addition to the significant contraction in market trading volume, OpenSea is also facing dual pressures from regulatory scrutiny and fierce competition from rivals. In August 2024, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to the company, indicating concerns regarding potential involvement with unregistered securities. Subsequently, OpenSea had to lay off 56 employees due to financial pressures.
**(After the investigation of OpenSea, Magic Eden’s CEO: Welcomes regulation for clarity)**
Meanwhile, competition in the NFT market has intensified, with platforms like Blur and Magic Eden continuing to expand. The success of Magic Eden following its increased support for Ethereum and other chains may also be one of the reasons behind OpenSea’s decision to add support for multiple blockchains.
**(Magic Eden is set to integrate a multi-chain ecosystem and tokens by the end of the year, with the founder promoting the MAGIC principle)**
**As Interest in the NFT Market Cools, Can OpenSea Return to Its Former Glory?**
As many traders now prefer to invest in more liquid assets with shorter hype cycles, such as meme coins, rather than NFTs, whether the market can regain the excitement of 2021 remains uncertain. Even though OpenSea is attempting to attract traders through platform upgrades, reduced fees, and the $SEA token airdrop, it remains to be seen whether this former market leader can regain its footing and even reverse the sluggish trend of the NFT market.
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