The NFT market’s decline in the previous year had a significant impact on OpenSea, leading to questions regarding its once impressive $13.3 billion valuation.
Presently, the widely-used NFT marketplace finds itself in the midst of discussions regarding potential acquisitions, with CEO and co-founder Devin Finzer indicating an open-minded approach to potential deals, including the prospect of being acquired themselves.
Finzer stated in a recent interview, “We believe that if the right partnership arises, then it’s certainly something we should consider.”
However, he clarified that OpenSea is not actively seeking a buyer and currently has no immediate plans for acquisition.
Despite being surpassed by rival platform Blur in terms of trading volume, OpenSea remains dedicated to establishing a brand that emphasizes user safety and eliminates fraudulent or problematic NFT collections.
The decline in OpenSea’s trading volume has indeed been significant, dropping by a staggering 96% since January 2022, as reported by data from Dune Analytics.
Meanwhile, Blur has been gaining momentum through strategies like airdrops of its token and currently boasts a daily trading volume that is five times larger than OpenSea’s, although OpenSea still maintains a larger user base.
During the NFT boom in 2021, OpenSea received substantial support from venture capitalists, with notable investors like Andreessen Horowitz, Paradigm, Coatue Management, and actor Ashton Kutcher participating in fundraising rounds.
However, there have been reports that Coatue Management devalued its stake in OpenSea by 90%, reducing its value to $13 million in November.
Despite ongoing speculation regarding a potential initial public offering (IPO) for OpenSea, CEO Devin Finzer has refrained from providing details or confirmation on the matter.
OpenSea Has Done its Share of Deals
In terms of strategic moves, OpenSea has already taken steps to expand its reach. In 2022, the company acquired Gem, an NFT aggregator tool, and earlier made acquisitions of Dharma, an early crypto wallet, and Mintdrop, a platform that streamlines market entry for creators.
CEO Devin Finzer underscored the importance of talent in their acquisition strategy, specifically targeting individuals with an entrepreneurial mindset who may have previously launched their own projects but are now seeking new opportunities.
Finzer stated, “Some of the most passionate individuals are those who go on to start their own projects, those with an entrepreneurial spirit. Perhaps they didn’t achieve the level of traction they desired with their own startup and are now exploring opportunities elsewhere.”
OpenSea is also actively collaborating with luxury brands to create customized NFT initiatives, reflecting the increasing interest of fashion houses and content-based companies in the NFT space.
Notably, in October, NFT trading volume surged by $99 million, reaching a total of $405 million, indicating levels of sales not witnessed since August and demonstrating the continued vibrancy of the NFT market.
In December 2023, NFT sales on the Bitcoin (BTC) network achieved a remarkable milestone, exceeding $881 million for the very first time.
NFT sales on the Bitcoin blockchain soared to a total of $881,223,753.92 during that month, establishing a new all-time high for single-month sales.
This impressive figure encompassed 111,713 buyer addresses and 98,744 seller addresses, both of which reached their highest monthly records ever.
Ethereum, as the second-largest blockchain, lagged behind with NFT sales amounting to $364.79 million.
Notably, BTC-focused NFT sales significantly outperformed those on the Ethereum network, being 2.34 times greater in December.
Solana secured the third position, boasting approximately $325.14 million in NFT sales, marking an astonishing 312% increase compared to the previous month.