NFT Giant OpenSea leaves options open for potential acquisitions

NFT Giant OpenSea leaves options open for potential acquisitions

Jan 28, 2024 07:41 AM EST | 2 minutes of reading

Source: Adobe / Rokas

The collapse of the non-fungible token (NFT) market last year dealt a blow to OpenSea, raising questions about its once staggering $13.3 billion valuation.

Now, the popular NFT marketplace is at the center of acquisition discussions, with CEO and co-founder Devin Finzer expressing an open approach to potential deals, including the possibility of an acquisition itself.

“We think if the right partnership comes along, then it’s something we should definitely consider,” Finzer he said in a recent interview.

But he clarified that OpenSea is not actively looking for a suitor and has no immediate plans to acquire.

Despite being overtaken by rival platform Blur, which achieved more business volume, OpenSea continues to focus on building a brand that prioritizes user safety and weeding out fraudulent or problematic collections.

The decline in OpenSea trade volume has been significant, falling 96% since January 2022, according to data from Dune Analytics.

Blur, on the other hand, has gained momentum thanks to airdrops of its token and now boasts a daily trading volume five times that of OpenSea, although OpenSea has a growing user base.

OpenSea enjoyed significant support from venture capitalists during the 2021 NFT boom, with Andreessen Horowitz, Paradigm, Coatue Management and actor Ashton Kutcher all participating in fundraising rounds.

However, Coatue Management reportedly wrote down its OpenSea stake by 90% to $13 million in November.

While rumors of a potential OpenSea initial public offering persisted, Finzer remained tight-lipped on the matter.

OpenSea has fulfilled its share of deals

In terms of deals, OpenSea has already made some moves, acquiring NFT aggregator Gem in 2022, as well as early cryptocurrency Dharma and Mintdrop, a platform that facilitates quick market entry for creators.

Finzer emphasized that talent is a critical factor in their acquisition strategy, looking for entrepreneurial-minded individuals who may have started their own projects but are now looking for opportunities elsewhere.

“Some of the most passionate individuals are the ones who are going to start their own project, the kind of entrepreneurial minded people. Maybe they didn’t get the level of traction they wanted in their own startup and are looking for a home elsewhere.”

OpenSea is also actively working with luxury brands to develop bespoke NFT initiatives, reflecting the growing interest of fashion houses and other content-based companies in the NFT space.

NFT trading volume in October increased by $99 millionreaching $405 million, marking sales levels not seen since August.

Likewise selling NFTs on bitcoin (BTC) Sew reached a new milestone in December 2023, when it topped $881 million for the first time.

NFT sales on the Bitcoin chain reached $881,223,753.92 last month, the highest sales record in a single month to date.

This included 111,713 buyer addresses and 98,744 seller addresses, both of which reached monthly highs to date.

Ethereum, the second largest blockchain, lags behind with NFT sales totaling $364.79 million.

NFT sales targeting BTC outperformed ETH by a significant margin, which was 2.34 times higher in December.

Solana secured third place with approximately $325.14 million in NFT revenue, a remarkable 312% increase from the previous month.

Leave a Comment

Your email address will not be published. Required fields are marked *