Why Is OpenSea Worth US$13 Billion?

Why Is OpenSea Worth US$13 Billion

The NFT marketplace has achieved a stunning valuation of more than US$13 billion merely four years after its launch.

Online non-fungible token (NFT) marketplace OpenSea is now worth US$13 billion, following a new investment of US$300 million in a Series C finance round led by hedge fund sponsors Paradigm and Coatue. Half a year ago, OpenSea was only valued at US$1.5 billion. 

The NFT marketplace is the leading platform and online community for artists and developers to sell their digital artwork as NFTs to art collectors and speculative investors. The company has recorded over US$14 billion in all-time sales across more than one million traders worldwide, which is a lot higher than any other NFT platform, such as Axie Infinity which has a US$3.94 billion all-time sales.

Rise of interest in NFTs

The reason for OpenSea’s increased valuation is because of the heightened popularity of NFTs over the past year. NFTs have become more appreciated by a broader consumer audience, ranging from collectors to investors, and NFT trades have risen 600-fold in 2020. 

In 2021, the NFT market generated more than US$23 billion in trading volume. Starting the year there were only around 5,000 active wallets engaging with NFTs every day, but by the end of 2021, that number rose ‌to more than 140,000.

For OpenSea, the NFT marketplace’s trading volume achieved a whopping US$3 billion in August 2021, which is an 800% increase compared to the previous month’s volume.

Hosting the most popular and expensive NFT projects

OpenSea’s valuation is especially accelerated by the success of popular projects, such as the Bored Ape Yacht Club (BAYC). Subsequent to the launch of the collection, the daily trading volume on the marketplace reached an all-time high of over US$320 million.

The BAYC collection consists of thousands of anthropomorphic ape avatar NFTs with different traits and attributes. What makes the Club prestigious is that the minimum cost of entry is 93 Ether (as of writing this article), which is about US$232,000. Late-night TV host Jimmy Fallon, NBA star Stephen Curry, singer Post Malone and rapper Eminem (who spent about US$460,000 on a Bored Ape graphic that looks like him) are all members of the Club, having dropped hundreds of thousands of dollars for the digital artworks.

Following the funding announcement, the OpenSea team said the proceeds would be used towards “accelerating product development” and “investing in the wider NFT and Web 3.0 community.” Co-founder and CEO of OpenSea, Devin Finzer, said, “Our ambition is to foster the scale and growth of the broader NFT ecosystem, including raising the profile of emerging creators and investing in the people who shape the NFT space for the better today.”

The company also promised to improve its clients’ support policies by scaling up its customer support and safety teams. NFT artists often encounter frustrations when reporting copyright infringements of their artworks on OpenSea. The new proposal may possibly be more helpful in helping registered artists detect stolen NFT artworks.

Header image courtesy of Unsplash 

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

How Is Technology Influencing the Food and Beverage Industry

How Is Technology Influencing the Food and Beverages Industry?

Food waste, sustainability and animal cruelty are some of the biggest challenges facing the food and beverage (F&B) industry nowadays. Like any other sector, the industry is dipping its toe into technology and innovations to seek solutions. While we are already seeing more food tech solutions in our everyday lives, like plant-based meat alternatives and food waste management startups.

3 Innovations for a Cleaner Environment You Never Heard Of

3 Innovations for a Cleaner Environment You Never Heard Of

Innovation in clean energy, sustainable infrastructure and eco-friendly solutions to environmental hazards are the need of the hour. The burden on the world’s natural recourses is immense, and it is high time we focus on renewability and diversification. While we are only scratching the tip of the iceberg, here are three innovations working to create an environment-friendly future.

How Can Entrepreneurs Overcome Loneliness?

How Can Entrepreneurs Overcome Loneliness?

Starting your own business is a project that will take over most of your life. You are straying away from the typical 9-5 jobs that your friends and family may have. The sheer effort you have to make to get a business up and running will leave you feeling lonely. While it might seem almost expected to feel lonely during your startup journey, loneliness is a slippery slope to several health conditions.

8 Techniques to Get Readers Rolling Right into Your Content

8 Techniques to Get Readers Rolling Right into Your Content

We’ve all been there. We’ve spent hours crafting the perfect blog post, article or white paper, but no one is reading it. Why? It could be for a million reasons, but often it’s because we’re not doing enough to get people to come to our content. In this article, we’ll learn about the eight techniques that will help you draw in readers and get your content read!

Amazon vs Flipkart Who Will Win Festival Sale War in India

Amazon vs. Flipkart: Who Will Win the Big Festival Sale War in India?

Amazon India and Flipkart, the two biggest ecommerce giants in India, have always been in a neck-to-neck competition for supremacy in the country. There is no better occasion to showcase their strength and take advantage of people’s shopping mood than during the Indian festive season, which begins in late September featuring various festivals, like Durga Pooja, Dussehra and Diwali.