Will the new NFT marketplace LooksRare challenge OpenSea’s dominance and why?

Bon Coiney

January 12, 2022

For over a year, NFTs, non-fungible tokens have been the craze of the crypto world. These are digital artworks with assigned values. Since the inception of the NFT trend, OpenSea, an NFT marketplace where users can buy and purchase NFTs, has almost dominated the market and is the most engaged NFT platform.

Even with the surge of NFTs last year, the industry is saddled with several flaws. The major disadvantage is a significant absence of competitive marketplaces. OpenSea has 90% of the market and does not seem to have any serious contender for its place. Most individuals aren’t interested in looking into other options; however, all that is set to change as a new marketplace has emerged, ready to give OpenSea a run. 

LooksRare to change the market?

 OpenSea has 90% of the market and does not seem to have any serious contender for its place. Most individuals aren’t interested in looking into other options; however, all that is set to change as a new marketplace has emerged, ready to give OpenSea a run.   LooksRare, a new NFT marketplace, seems to be the competitor everyone has been waiting for. Aside from having a catchy name, the project has several features that could bait OpeaSea’s users to its platform.  

With all of the angst surrounding OpenSea, it was only a matter of time until another player entered the mix. LooksRare follows in the footsteps of other token drops by issuing their $LOOKs token, which is based on the amount of money you’ve spent on ETH transactions.

A vampire attack

LooksRare intends to entice OpenSea’s major NFT spenders by providing them with free LOOKS, its native token. The tokens are available to everyone who traded over 3 ETH on OpenSea between June 16 and December 16, 2021.

In the crypto world, this is known as a vampire attack, and LooksRare is not the first project to poach on OpenSea’s corridors. So far, none has been successful, but LookRare seems to be launching a serious attack. 

LooksRare intends to reward users every time they trade an NFT, in addition to encouraging existing OpenSea players. It would also reward people that stake the LOOKS token with a 30,400 percent annual percentage rate (APR). It also hopes to attract more customers with its cheaper regular cost of 2%.

LooksRare sells $100 million NFTs in a few hours

According to pseudonymous co-founder Zodd, the budding non-fungible token marketplace has had $105 million in trading volume in the last 24 hours, producing 613 ETH (almost $2 million) in platform fees that will be distributed to LOOKS token holders in the next hours.

Traders are wagering that LooksRare will last at least a short time. A LOOKS airdrop worth an average of $3,500 has been claimed by over 75,000 Ethereum addresses, and the token is on the verge of breaking into the top 200 cryptocurrencies by market cap.

Why LooksRare is a serious contender

In so many ways, LooksRare emerged when the market had grown weary of OpenSea’s monopoly and policies. This could sway more users to its platform. The figures indicate a scorching-hot start for the brand-new platform that appears to meet a definite market need.

 NFT traders have been clamoring for OpenSea to create a token and decentralize parts of its operations for months. Critics have accused the dominant marketplace of being a selfish intermediary in a decentralized environment because of its policies around IP enforcement and delisting hacked or exploited NFTs. 

Also, OpenSea’s 2.5% charge, which goes to its team rather than users, has been heavily criticized as a form of bullying. The platform is said to operate double standards when it comes to intellectual property claims. The growing discomfort in OpenSea’s users could prove to be a big advantage for the growing LooksRare. It is yet to be seen if artists would later troop back to OpenSea but so far, the numbers look good for LooksRare