Here’s how newbie NFT marketplace LooksRare overtook the OG OpenSea

While the crypto market mayhem might not be over, the OG non-fungible token (NFT) marketplace OpenSea has been recording impressive volumes.

However, OpenSea’s competitor LooksRare, which launched on 10 January, has been breaking its records with regards to sales. Dune Analytics recorded that since the launch, OpenSea has clocked total volumes of over $965 million. But, at press time, LooksRare’s total volume crossed an impressive $1.8 billion. The newcomer is also maintaining an everyday lead in volumes in the past week.

And naturally, the new NFT trading platform has taken the industry by storm. But, it is worth noting that after losing on the DappRadar Top Marketplaces leader board, OpenSea attracted 14% more traders in the last week.

What’s pumping the lead?

DappRadar also stated that a combination of factors is responsible for LooksRare lead, which includes a rather lucrative token airdrop. But,

“OpenSea benefits from an already established brand and level of popularity as one of the most successful NFT marketplaces out there. “

Earlier this month, OpenSea announced $300 million in Series C funding that took its valuation up to $13.3 billion. With the funding, the marketplace aimed to accelerate product development, improve customer support and customer safety, invest in the wider NFT and Web3 community, and team growth.

Soon after, OpenSea surpassed the one million mark in terms of registered users who have made at least one transaction on the platform.

Having said that, DappRadar has also raised Wash trading concerns around new top performer LooksRare. Wash trading is essentially selling the NFT to the owner to hike the price. This means that the collectible doesn’t really change hands. While looking at the top collection on the market, it noted,

“This wash trading is stimulating impressive trading volume figures and driving the marketplace up the ranks. “

For instance, the report explained, NFT page of Meebit #16728 shows that one NFT has a trading history of 6 times in one day.

“Every sale happened between two wallets, clearly indicating that the NFT owner is selling the NFT to themselves.”