NFT sales and trading volumes have surged to all-time highs in recent months. Surprisingly, not all NFT marketplaces are seeing the spoils. OpenSea has been the obvious winner, having established itself as the go-to marketplace for the long tail of NFTs on Ethereum. In October 2020, OpenSea represented only 33% of the NFT market’s monthly volume. Less than a year later, it’s pulled away to ~97% of all NFT volume on Ethereum. It’s important to note that the Axie Infinity marketplace has been excluded from this calculation, and the chart below, since it lives on the Ronin sidechain.
Disclosure: Delphi Ventures has invested in Ember Sword and Axie Infinity. Members of our team also hold NFTs mentioned in this report, such as Crypto Punks and BAYC. These statements are intended to disclose any conflict of interest and should not be misconstrued as a recommendation to purchase any token. This content is for informational purposes only and you should not make decisions based solely on it. This is not investment advice.
OpenSea has established itself as the go-to marketplace for NFTs on Ethereum, from having only 33% market share on Ethereum in Oct 2020 to having ~97% today (excl. the Axie Marketplace).
The platform takes a 2.5% fee on all sales, which has resulted in ~$27m of fees just 17 days into August. When annualizing this level of monthly fees, and taking into account its recent $1.5b valuation, we’ve calculated a P/E ratio of ~2.63x for OpenSea.
OpenSea activity is now a primary driver for burning ETH. Within a week of EIP-1559’s implementation, OpenSea had burned 1.67X more ETH than Uniswap V2.
Just mid-way through the month, August metrics compared to July show MAUs up 87% to 117k, NFT sales up 68% to 770k, volume up 222% to $1.05B.
For the top 20 projects on OpenSea’s Ethereum & Polygon marketplaces, over the last 7 days, Polygon accounted for only 2.7% of sales, despite higher gas fees.
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