NFT Giant OpenSea Keeps Options Open for Potential Acquisition

NFT Opensea

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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January 28, 2024 07:41 EST

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The collapse of the non-fungible token (NFT) market last year dealt a blow to OpenSea, raising questions about its once staggering $13.3 billion valuation.

Now, the popular NFT marketplace is at the center of acquisition discussions, with CEO and co-founder Devin Finzer expressing an open-minded approach to potential deals, including the possibility of being acquired itself.

“We think that if the right partnership comes along, then that’s something we should certainly consider,” Finzer said in a recent interview. 

However, he clarified that OpenSea is not actively seeking a suitor and has no immediate plans to be acquired.

Despite being overtaken by rival platform Blur, which has achieved greater trading volume, OpenSea remains focused on building a brand that prioritizes user safety and removes fraudulent or problematic collections.

The decline in OpenSea’s trading volume has been significant, plummeting by 96% since January 2022, according to data from Dune Analytics.

Blur, on the other hand, has gained momentum by employing airdrops of its token and now boasts a daily trading volume five times greater than OpenSea’s, although OpenSea still has a larger user base.

OpenSea enjoyed substantial support from venture capitalists during the NFT boom in 2021, with Andreessen Horowitz, Paradigm, Coatue Management, and actor Ashton Kutcher all participating in fundraising rounds.

However, Coatue Management reportedly devalued its stake in OpenSea by 90% to $13 million in November.

While rumors about OpenSea’s potential initial public offering persist, Finzer remained tight-lipped on the matter.

OpenSea Has Done its Share of Deals

In terms of deals, OpenSea has already made some moves, acquiring NFT aggregator tool Gem in 2022, as well as early crypto wallet Dharma and Mintdrop, a platform that facilitates quick market entry for creators.

Finzer emphasized that talent is a crucial factor in their acquisition strategy, seeking entrepreneurial-minded individuals who may have started their own projects but are now seeking opportunities elsewhere.

“Some of the most passionate individuals are those who go to start their own project, those sort of entrepreneurial-minded people. Maybe they didn’t get the level of traction that they wanted in their own startup, and they’re looking for home elsewhere.”

OpenSea is also actively engaging with luxury brands to develop bespoke NFT initiatives, reflecting the growing interest of fashion houses and other content-based companies in the NFT space.

In October, NFT trading volume surged by $99 million, reaching $405 million, signifying levels of sales not seen since August.

Likewise, sales of NFTs on the Bitcoin (BTC) network reached a new milestone in December 2023, surpassing $881 million for the first time ever. 

NFT sales on the Bitcoin chain reached $881,223,753.92 last month, setting the highest single-month sales record to date.

This included 111,713 buyer addresses and 98,744 seller addresses, both setting the highest single-month records to date.

Ethereum, the second-largest blockchain, trailed behind with NFT sales totaling $364.79 million.

BTC-focused NFT sales outperformed ETH’s by a significant margin, being 2.34 times greater in December.

Solana secured the third spot with approximately $325.14 million in NFT sales, experiencing a remarkable 312% increase from the previous month.