The world of non-fungible tokens (NFTs) is evolving rapidly, and the competition among NFT marketplaces is getting tougher. One example is the battle between Blur and OpenSea, two prominent NFT marketplaces.
In the last week, Blur has outpaced OpenSea regarding the trading volume and active users. This development has caused OpenSea to respond with a strategy to win back the lost user base.
The move by OpenSea to offer these three incentives is a direct response to the growing popularity of Blur. The three incentives aim to lure back users who had previously left the platform for Blur. OpenSea’s attempt to win back users is a common practice in highly competitive markets, but only time will tell if it will be enough to compete with Blur.
The OpenSea Comeback
The NFT marketplace is evolving rapidly, with fierce competition among various platforms vying for supremacy. Recently, Blur, a prominent NFT marketplace, has outpaced OpenSea regarding trading volume and active users.
According to data from CryptoSlam, Blur’s trading volume has increased by a staggering 361% in the last month alone. In addition, the platform has also generated over $46 million in revenue in the same timeframe, which is impressive.
The surge in Blur’s popularity has made other NFT marketplaces sit up and take notice, with OpenSea being one of them. OpenSea, one of the largest NFT marketplaces, has announced three significant changes to its platform in response to Blur’s success.
The first change is the introduction of zero fees for a limited time. This move aims to attract back users who may have migrated to Blur due to the platform’s lower fees. The second change is the introduction of optional creator earnings, where creators can earn a minimum of 0.5% on all collections.
This move consolidates the marketplace and retains creators who may have left the platform for other marketplaces less observant in enforcing creator earnings fully. The third change announced by OpenSea is the leniency it will show to other operators with similar policies, both old and new.
This move is significant, as it acknowledges that OpenSea has been losing users to other NFT marketplaces that do not fully enforce creator earnings. By consolidating its dominance in the industry and enforcing creator earnings, OpenSea hopes to win back the trust of creators who have left the platform.
Why Competition in The NFT Space is Good For Users
Competition is crucial in any industry, and the NFT space is no different. In recent times, the NFT market has witnessed a surge in the number of marketplaces, which is great for the industry’s overall growth. In addition, increased competition brings innovation, better products, and improved services, benefiting the end customer.
One of the primary reasons why the NFT space needs more competition is to ensure customer protection. With the growing popularity of NFTs, the industry has witnessed increased scams, frauds, and other malicious activities. In this regard, competition can play a significant role in ensuring customer protection.
When multiple marketplaces compete with each other, they are more likely to implement measures to protect their customers. These measures include improving security protocols, implementing stricter verification procedures, and providing better customer support.
The competition will force marketplaces to put customer protection at the forefront of their operations, which can help reduce fraudulent activities in the industry.
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