OpenSea, a marketplace for NFTs, declared on Friday that it will be eliminating fees due to a significant shift that commenced in October 2022. Despite their best attempts, OpenSea observed that a substantial number of users and volume migrated to NFT marketplaces that don’t enforce creator earnings. This shift has since accelerated dramatically, according to the platform.
OpenSea highlighted that around 80% of the ecosystem’s total volume doesn’t fully compensate creators, and a large portion of the sales volume has transitioned to no-fee marketplaces. In recent times, the NFT market has encountered competition from Blur, which has achieved USD 1.4 billion in all-time sales volume in a brief period. Nevertheless, Blur’s all-time sales are notably less when compared to OpenSea’s USD 34.53 billion in all-time sales.
OpenSea is also contending with competition from digital collectible markets such as Looksrare and X2Y2. With the implementation of its new changes, OpenSea aims to create a balanced system of incentives and motivations for all participants in the ecosystem, including creators, collectors, power buyers, and sellers. Moreover, the company revealed that it will be updating its operator filter to permit sales using NFT marketplaces that follow the same policies, including Blur. “This marks the beginning of a new era for OpenSea, and we are enthusiastic about testing this model,” stated the company.