You are here
Home > All Crypto > Is OpenSea an undervalued NFT market?

Is OpenSea an undervalued NFT market?


For sure, 2021 has been a momentous yr for nonfungible tokens (NFT). The nascent market has seen unprecedented progress as gross sales quantity from January thus far nears $10 billion — a 14,500% surge from 2020. The NFT market OpenSea is answerable for processing an important chunk of that.

OpenSea controls a majority of NFT gross sales and has processed greater than $10 billion value of transactions since launching in December 2017. Its 2021 quantity alone even topped the income earned by Etsy and is corresponding to the income generated by eBay. However regardless of this, it seems as if OpenSea and the whole NFT area are simply getting began.

Prior to now 30 days, OpenSea processed greater than $1.6 billion in transactions, main all different marketplaces by a large margin. NFT sport Axie Infinity is available in at a distant second, with $675 million, and CryptoPunks, whose common value per sale is 447 instances increased than OpenSea, is available in at third with $165 million. Surprisingly, Rarible, which in 2020 rivaled OpenSea in gross sales and even headlined a funding spherical of its personal this yr, pales compared to the transaction quantity OpenSea has been posting not too long ago.

OpeanSea’s progress

OpenSea didn’t begin the yr registering billions of {dollars} in gross sales. From January to July, {the marketplace} processed a mean of about $106 million value of transactions, per DappRadar. It was not till August when the billion-dollar mark was reached, which got here amid a resurgence of NFT gross sales following a cooldown interval from a previous peak in exercise in Could. Gross sales topped at $3.4 billion that month, marking a 1,025% improve from July.

Demand repeatedly elevated regardless of rising fuel charges which have annoyed a rising variety of customers. OpenSea has addressed this situation with its integration with layer-two Ethereum facet chain Polygon and has offered cheaper and quicker transactions since July.

Whereas many of the transactions nonetheless happen on the Ethereum blockchain, Polygon-based volumes on OpenSea exhibit first rate numbers. Knowledge from Dune Analytics reveal that about $111.5 million value of transactions has been processed since September — nonetheless a reduce above the amount generated by different marketplaces prior to now month. Energetic customers are additionally effectively past 200,000.