The crypto markets might still be dipping or bearish, but the non-fungible token (NFT) is set to make new All-time Highs in trading volume.
OpenSea Trading Volume Leads the NFT Market
According to a data report from The Block on January 31, NFT transaction volume was around $6.90 billion at the time of writing. This means that it has the potential to surpass the $7 billion mark by the end of the day.
As expected, OpenSea remained the dominant force in the NFT market with a total transaction volume of $4.21 billion. But in the LooksRare model, worthy competition arose with a deal worth $2.2 billion. Other notable performers include Solana’s $314.1 million Magic Eden.
This is the highest monthly volume ever recorded in the industry and well above the all-time high of $3.31 billion reached in August 2021. Total NFT volume was around $20 billion last year, and January’s performance alone suggests this year’s volume could well exceed it.
OpenSea also had reason to celebrate as it broke its monthly record of $3.16 billion set in August 2021.
Throughout the past year, OpenSea has been the dominant force in this space, accounting for more than 80% of monthly NFT transactions on many occasions.
LooksRare Battles OpenSea for Leading NFT MarketPlace
But the launch of LooksRare earlier this month seemed to end the party. With the simple goal of overthrowing OpenSea, LooksRare employs various strategies to attract more users. The first-month trading volume of over $2 billion shows that the strategy is working.
The $2.2 billion transaction value on the platform represents organic transaction volume. However, the actual trading volume of the NFT market exceeds $10 billion due to the high volume of wash trading. LooksRare’s native token, LOOKS, is currently trading at over $4, or more than 64% of its value since inception.
It may be time for OpenSea to redefine its approach and expand its reach. There are already rumours that leading markets will soon add support for Solana-based NFTs.