The NFT war is declared: LooksRare registers $100 million in volume and doubles OpenSea

NFTs have undoubtedly been the most iconic phenomenon of 2021 in the crypto ecosystem. Faced with the monopoly of the OpenSea purchase and resale platform, the competition is organizing itself by offering a more community-based alternative.

NFT: OpenSea’s preserve?

In just one year, the ecosystem of NFT evolved from a market of niche to one of markets main of the crypto ecosystem. Thus, in January 2021, the sales volume of NFTs was painfully over one hundred million dollars.

A few months later, events took a completely different turn. Thus, as of August 2021, the sales volume of NFTs has continued to exceed one billion dollars, with a record at more than $3 billion in the month of August.

At this time, NFT’s buy and sell platform OpenSea largely dominates the market. Thus, this is the source of more than 90% of the volume month after month.

Evolution of NFT sales volume since June 2020 – Source: TheBlock.

However, insider trading rumors on the launch of NFTs in September 2021 have tarnished the reputation of the platform. Also, the community has constantly criticized the 2.5% fixed fee charged by the platform.

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LooksRare: the new contender for the NFT throne?

It is in this soil of uncertainty that a competitor to OpenSea was born. Appointed LooksRare, this new platform intends to change the rules of the game.

Announcement image of the launch of LooksRare.
Announcement image of the launch of LooksRare

The platform arrived thunderously in the ecosystem with a sizeable airdrop. Thus, the platform distributed its tokens LOOKS to all users who have exchanged at least 3ETH on the platform OpenSea, between June 16 and December 16, 2021. A strategy aimed at vampirize OpenSea and capture its users.

In the space of a few days, hundreds of thousands of users flocked to the airdrop, and made LooksRare one of the biggest gas consumers.Ethereum.

Finally, the NFT exchange platform was successfully launched on January 10th. Only two days after its launch, it is already registering significant volumes.

Thus, the platform recorded a volume of more than 300 million dollars on January 11, almost reaching $400 million in total since launch.

Volume recorded every hour since the launch of LooksRare
Volume recorded every hour since launch – Source: Dune Analytics.

The community NFT platform

As we have seen, LooksRare intends to surpass OpenSea. To do this, it has adopted a very different model from its competitor.

Thus, OpenSea applies a 2.5% fee on each sale made on the platform. These costs go to the platform and its development team.

For its part, LooksRare lowers its fees to 2% and all of the fees recovered are redistributed in the form of LOOKS to all users who have staked LOOKS tokens on the platform. Therefore, the success of the platform is shared with the first users and stakers of the project.

Thus, more than 2.8 million LOOKS tokens and 2,066 ETH were distributed after the first day of trading to protocol stakers.

Announcement of fees distributed on the first day of trading.
Announcement of fees distributed on the first day of trading.

It remains to be seen whether LooksRare will be able to stay the course against OpenSea. Unfortunately, this new gold rush has once again driven fees on the Ethereum network to new heights. Fortunately, Ethereum 2.0 and the transition to Proof of Stake are fast approaching: ETH 2.0 should be deployed in June 2022.

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