NFTs finished off strong for January in stark contrast to the average 20% price drop displayed by the broader cryptocurrency market. OpenSea, NFT's largest marketplace posted a stellar start to the year by setting a new month high of US$4.95billion in volume on Jan 2022.
OpenSea On Track for a $50b Trading Volume Year
If OpenSea's January performance is any indication of the full year performance, trading volume will exceed $50billion by year end. In our article earlier this year: Crypto Predictions 2022, we predicted an increase of 3-5x trading volume in comparison to OpenSea's 2021 $15billion year. Our predictions put 2022 trading volume at $45-$75billion for the year, a probable outcome given current trends.
February Outlook and the Competition
With just a week into February, OpenSea has recorded over $1.3billion in trading activity. Pro-rating for the remainder of the month will put OpenSea at another $4.5billion month.
Analyzing the new NFT marketplace competitor LooksRare which was launched earlier this year, it is difficult to determine the true volume due to wash trades. LooksRare distributes royalty-fees collected on sales to its stakers whereas OpenSea has kept these fees. This reward promotes wash-trading where one buy and sells their own NFTs and collects the fees, artificially pumping up the trading volume. Analysis on LooksRare shows trading volume of $16b since inception earlier this year compared to OpenSea's $6b within the same timeframe. It will be interesting to see actual trade volume on LooksRare to determine if the top NFT marketplace is starting to lose its dominance.
OpenSea analytics can be viewed on dune.xyz by @rchen8
LooksRare Comparison on dune.xyz by @hildobby
Cryptocurrencies are highly volatile and risky with a potential to lose all of your invested capital. Conduct your own due diligence and consult your financial advisor before making any investment decisions. The content contained on this Website shall not be understood or construed as investment advice and you understand that you are using any content at your own risk.
Read our Terms of Use for our full disclaimer.
We use cookies to enhance user experience, personalize content and ads. By continuing to use our website, you acknowledge you have read, and agree with, our Privacy Policy and Terms of Service.