Comparative Analysis of NFT Marketplaces

Kunal GoelJul 3, 2022 ⋅ 6 min read

Key Insights

OpenSea continues to dominate the NFT marketplace landscape. Its decentralized competitors, X2Y2 and LooksRare, haven’t captured significant user and transaction share, despite incentivizing trade and volume.
Uniswap’s acquisition of Genie, the NFT marketplace aggregator, may give the challengers their best shot at the king.
The fundamentals for the alternate marketplaces do not impress, even after adjusting for differences in market cap.

OpenSea remained the dominant marketplace for NFT trading throughout 2021, with a >80% market share. Its near-monopoly allowed it to build a strong brand, maintain centralized ownership, and charge a high 2.5% transaction fee.

Recently, however, alternatives have come up that challenge OpenSea’s dominance. Primary among them are X2Y2 and LooksRare, which launched in Q1 2022. Have they been effective in acquiring market share? Now that NFT euphoria has subsided, do their native tokens present a compelling investment opportunity?

Challengers Appear

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Kunal Goel

77 Reports kunalgoel

Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.

Mentioned Assets

Outline

Key Insights
Challengers Appear
The Good, the Bad, and the Ugly
Genie in a Bottle
Profitability and Valuation
Conclusion

Author

Kunal Goel

77 Reports kunalgoel

Mentioned Assets