Rarible's Support for NFT Creator Royalties Sparks Surge in Trading Volume While OpenSea Declines
Summary:
Rarible, an NFT marketplace, experiences a significant increase in trading volume after expressing support for NFT creator royalties. In contrast, competitor OpenSea sees a decline in trading volume. Rarible's decision to maintain royalties and remove certain marketplaces from aggregation data leads to a surge in trading activity. Ethereum-based NFT projects observe a decrease in royalties earned.
Trading volume on the nonfungible token (NFT) marketplace Rarible has surged in the past 24 hours following their declaration of support for NFT creator royalties. This comes as rival marketplaces, like OpenSea, have reversed their support for royalties, leading other NFT projects to follow suit. According to data from DappRadar, Rarible's 24-hour fiat trading volume reached $1,500 across 38 sales on August 23, marking a 653% increase from the previous day. While these figures are relatively small compared to other platforms, Rarible's volume growth surpassed that of OpenSea, which experienced a 15% decline in trading volume. LooksRare and X2Y2 saw respective increases of 5.8% and 14% in their 24-hour volumes. Rarible's decision to maintain creator royalties and remove OpenSea, LooksRare, and X2Y2 from their aggregation data was announced by co-founder Alex Salnikov on August 22. Salnikov emphasized the importance of valuing and compensating creativity in the space, stating that they cannot sit idly by while that promise is undermined. In February, OpenSea stopped enforcing NFT creator royalties, admitting that it had lost ground to Blur, another popular marketplace that does not enforce royalties. On August 17, OpenSea announced the closure of its royalty enforcement tool, allowing creators to blacklist marketplaces that do not enforce royalties due to a lack of adoption. It's worth noting that royalties earned by Ethereum-based NFT projects reached a two-year low in July, as reported by analytics firm Nansen.
Published At
8/24/2023 1:47:54 AM
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