The NFT market has performed poorly recently, except for the Blur market, which has attracted attention due to its zero-fee policy. According to data from market analysis company NFT NFTgators, Blur took the lead in NFT daily trading volume in March, placing the NFT market’s absolute leadership The latter pushed OpenSea to the second place with a 20% market share. In terms of market share, Blur dominated the NFT market in March with a market share of 69%.
#offshoreThe valuation plummeted to #TigerGlobal Cut enterprise value by 76% https://t.co/lPImexLFZz
— Kyptos (@azcoinnews) April 29, 2023
The decline in OpenSea’s market share resulted in a significant drop in its value. At the peak of the NFT craze last year, OpenSea was valued at $13 billion. However, Tiger Global, one of the largest investors, recently lowered OpenSea’s enterprise value to $3 billion.
Tiger Global invested $126.8 million in OpenSea’s Series C funding round in November 2021 and January 2022. However, Tiger Global slashed the value of its stake in OpenSea by 76% to $30.2 million late last year.
The drop in OpenSea’s valuation is largely due to the overwhelming market share of rival platform Blur, combined with the declining popularity of NFTs. Some investors are also questioning OpenSea’s long-term viability, given the massive financial toll from Blur’s arrival. Additionally, this NFT market is plagued by the problem of unreasonably overvalued NFTs. Except for a few holders, ordinary investors are no longer interested in expensive NFTs.
The weak NFT market is not limited to OpenSea. Shortly after OpenSea made its first Series C investment, OpenSea’s weekly Ethereum transaction volume (mostly for NFT transactions) slumped by more than 90% from $1 billion to $1 billion a year later, according to data from crypto analytics platform Nansen. $91 million. The decline in popularity is evident in Yuga Labs’ Bored Ape Yacht Club (BAYC) creation, which sold for $2 million in 2021 but is now down to just a few tens of thousands of dollars as investors start to tire. Repeatability of NFTs.
The news that Tiger Global, one of the most active investors in 2020 and 2021, suffered such a large loss may have given many other VCs and crossover investors investing in the NFT market a taste of it. The weakness in the NFT market, and the resulting drop in OpenSea’s valuation, is a red flag for investors in the crypto market. Market trends and the viability of individual platforms must be carefully evaluated before making an investment decision.
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according to Kyptos
