OpenSea, a rising star in the field of cryptocurrency, is taking advantage of the diverse set of assets in the industry. Here are some takeaways:
NFTs are for real.
- Whether cynic or supporter, the numbers show that non-fungible tokens are far from frivolous.
- So far this year, NFT sales have totaled more than $13 billion, with much of that sum arriving in the last two months.
- OpenSea has capitalized on that growth, with a 30,000% increase in the number of sales from 2020 to 2021, with growth expected to continue.
Running lean is vital for markets with high volatility.
- OpenSea maintained a small team for its first few years, with just 7 employees as of late 2020.
- That allowed the company to weather the crypto bear market, hanging in until NFTs took off.
- Running lean also helped the team beat its competitor (announced on the same day as OpenSea) Rare Bits.
- Additionally, because OpenSea offered a greater range of crypto assets, they were able to capitalize on a wider section of the market.
OpenSea is extremely dominant.
- The exchange boasts a market share of 97%. That’s thanks, in part, to OpenSea’s superior asset breadth, easy listing process, and robust filtering system.
- Because of its dominance, OpenSea commands a wide swathe of various sectors, but, that said, it faces a variety of challenges.
- Chief among them are questions pertaining to its responsiveness to customer feedback.
- Because OpenSea has grown so quickly, it has to be sure it does not crash and burn from expanding so fast.
Decentralization doesn’t have to be doctrinal.
- Much of the crypto community seems to view decentralization as both a source of legitimacy and a cure-all.
- While there’s clearly room for decentralized players — Uniswap being one example in the token exchange space — centralized companies can also thrive. OpenSea is the latter.
Investors may want to watch out for new types of NFTs.
- If you’re feeling irked you missed out on CryptoPunks, Bored Apes, and Art Blocks, there may be some consolation.
- New formats are constantly being created; two experts suggest music and “intelligent” NFTs are worth watching.