Sept. 2022, Thiago Freitas
Dashboard: OpenSea X2Y2 LooksRare Magic Eden In this article, we will explain the most important features to understand the advantages, disadvantages and strategic direction of these NFT trading markets. What does multichain mean? image description Magic Eden x OpenSea, Solana - Source: Footprint Analytics As more and more blockchain projects move towards multi-chain, the trading market limited to one chain will lose its advantage in the competition. OpenSea and Magic Eden are developing multi-chain capabilities, while X2Y2 and LooksRare are still focusing on the Ethereum chain. What is whitelist management? Whitelisting is the process of reserving a spot for an upcoming NFT mint. It usually includes several steps to keep the community engaged and the project engaged during the actual rollout. image description Whitelist section on Magic Eden, with the Discord “role” column Magic Eden has stepped in to provide tools to simplify this process, offer an integration with Discord to automate this process, and monopolize the minting process on the platform. This helps to increase user retention and utilization of its services. What are NFT Launchpads? image description Magic Eden Launchpad Application page image description Minting page at OpenSea What is an NFT private sale? image description Private sale on X2Y2 In the case of X2Y2, which charges no fees for the service, and also waived copyright fees for creators in this deal. This feature is useful for users who are used to selling directly to other collectors, or in situations where the buyer wants to negotiate a different price that the buyer doesnt want to be easily available on search. What is a listing condition pending order? image description Conditional Listing on LooksRare This is useful, for example, when a trader is trying to sell items with specific characteristics of an NFT series and only wants to sell one of them. What are optional royalties? image description Optional Royalty on X2Y2 Now, buyers can choose to pay or not pay on several NFTs trading marketplaces. This happens because royalties are not encoded in the smart contract of the NFT collection, but are deployed as a feature in the marketplace itself. So X2Y2 started offering this feature when purchasing directly on their website. NFT market trading tokens image description LooksRare rewards page Although there may be some changes in strategy and value, the reward system is basically the same: users interact with the market by placing orders, buying and selling NFTs to earn tokens, which he can then exchange for different cryptocurrencies, or stake them in the market for Get higher rewards. What is a collectible offer? image description Collection offer Traders often use this feature to get items below the reserve price. What is a bulk order? image description Bulk Swaps on Magic Eden fee structure fee structure Every NFT marketplace has a different fee structure. Platforms with more users charge more (2.5% for OpenSea; 2% for Magic Eden). These are also platforms that do not share any part of their revenue with traders. image description X2Y2 Trading Fees secondary title OpenSea OpenSea was founded in 2017 by Devin Finzer and Alex Atallah. It is one of the leaders in the NFT market with over 2 million collectibles andExceedimage description Opensea Main Page OpenSea divides its collections into several categories: art (from profile pictures of social media accounts to abstract works), domain names (names like handsome.eth, which can be linked to blockchain addresses), and music. Advantage Advantage The main selling point of OpenSea is that it is the first and largest NFT marketplace, so it relies on the number of users to incentivize NFT listings. The idea is that the best way to market a new series is to make it visible on the platform with the largest audience. So if most collectibles are working hard to become verified collectibles on OpenSea, its natural for collectors to pay attention to new collectibles that come online. disadvantage disadvantage image description Gas consumption by protocol - Source: Gas Guzzlers This lures users with better overall trading terms for competitors and triggered an update to their protocol, called Seaport. Released in June 2022, this new set of smart contracts consumes 38% less gas than the previous version, making it cheaper to place orders and buy. X2Y2 image description X2Y2 Rewards page Since its launch, it has rewarded users for buying and selling NFTs. It transfers transaction fees to holders who decide to stake platform tokens on the platform. Note that this also creates problems with wash trading (explained below). Advantage Advantage disadvantage disadvantage X2Y2 has significant wash trading volume due to rewards for trading on the platform, with users flipping NFTs back and forth between accounts and farm incentives. This means that many transactions are not real, making it difficult for beginners to assess the market value and demand for certain NFT collections. Nor has X2Y2 shown any initiative to overtake Ethereum, replicating its model in a less crowded environment. LooksRare launched in early 2022 as the communitys first NFT marketplace and actively rewards traders, collectors and creators for their participation. With this in mind, it rolled out to eligible OpenSea users"airdropairdrop"image description Listing Rewards on LooksRare It implements a rewards program where users who buy or sell NFTs on LooksRare earn LOOKS tokens. Transaction fees (2% of sales) from the platform are then earned by LOOKS stakers. Additionally, creators also receive their royalties when sales are made. Advantage Advantage Some of the now-standard features of the NFT marketplace debuted on LooksRare. Collectible Offers: Make offers covering all NFTs in the selected collection Trait Offer: Buy any NFT in the collection that has a specific trait Multiple Cancellation: Cancel multiple open orders in one transaction and continue to have dedicated unique features such asconditional pending orderdisadvantage disadvantage LooksRare could not gain more popularity after distributing LOOKS tokens to former OpenSea users during the initial launch phase. It remains solely focused on the Ethereum blockchain, offering a niche approach for more sophisticated traders. Like X2Y2, LooksRare is also facing wash trading issues, hopefully not a problem for the platform itself (since it charges transaction fees), but it makes users suspicious of liquidity and floor price data. Launched in September 2021, Magic Eden quickly became the leading NFT marketplace on Solana. image description Mint calendar filtered by ETH Blockchain Advantage Advantage image description Launchpad disadvantage Whitelisted drops managed by Magic Eden disadvantage Magic Eden is the dominant platform on Solana (accounting for over 80% of on-chain NFT transactions) and doesnt have any real competition yet. However, Magic Eden lacks a user experience that really differentiates it from other platforms on Ethereum. image description Footprint Analytics - Buying Activity OpenSea & X2Y2 & LooksRare & Magic Eden image description Footprint Analytics - MarketShare for OpenSea & X2Y2 & LooksRare & Magic Eden Summarize Footprint Analytics - Average Item Value for OpenSea & X2Y2 & LooksRare & Magic Eden As OpenSea solidifies its dominance in the NFT vertical, many people active in the industry have noticed an opportunity for unique features and functionality. community contribution This article comes fromFootprint Analyticscommunity contribution This work is original by the author, please indicate the source for reprinting. Commercial reprinting needs to be authorized by the author, and those who reprint, extract or use other methods without authorization will be investigated for relevant legal responsibilities. The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome. Copyright Notice: This work is original by the author, please indicate the source for reprinting. Commercial reprinting needs to be authorized by the author, and those who reprint, extract or use other methods without authorization will be investigated for relevant legal responsibilities.
Characteristics of the NFT trading market
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