OpenSea is striving to set a record month for Ethereum NFT trading volume, but competition is intensifying. A new formidable challenger has emerged in the form of LooksRare, which amassed over $110 million in trading volume within just over a day of its launch.
LooksRare's Aggressive Entry into the NFT Market
Launched yesterday, LooksRare targets OpenSea's user base through its native LOOKS token. The platform offers free token airdrops to OpenSea users who traded at least 3 ETH (approximately $9,630 at current rates) between June 16 and December 16, 2021.
This strategy, known as a vampire attack, incentivizes users to migrate from established platforms by offering token rewards. Similar tactics were employed by SushiSwap in 2020 against Uniswap and by NFT marketplace Infinite against OpenSea.
Key Features of LooksRare
- Lower Fees: A 2% transaction fee compared to OpenSea’s 2.5%.
- Revenue Sharing: 100% of fees are distributed to LOOKS stakers in Wrapped Ethereum (WETH).
- Trader Incentives: Additional rewards for trading verified NFT collections like Bored Ape Yacht Club and Meebits.
👉 Discover how LooksRare rewards its community
Market Performance and Initial Reactions
According to Dune Analytics, LooksRare processed $110M+ in Ethereum NFT trades** within its first 24 hours. Meanwhile, OpenSea’s daily volume dipped to **$170M on Monday—its lowest in 2022—down from $261M the previous Sunday.
"NFT markets are volatile, much like crypto. One day’s data isn’t a trend, but LooksRare’s early momentum is noteworthy."
Tokenomics and Adoption
- LOOKS Price: Peaked at $4.52**, currently trading at **$3.71 (-16%).
- Airdrop Claims: Over 74 million LOOKS claimed by 185,000+ eligible Ethereum wallets.
- Daily Rewards: 2.86M LOOKS (~$10.6M) distributed daily, decreasing gradually over time.
Unique Offerings and Community Backing
LooksRare enables collection-wide NFT bids—e.g., collector Pranksy offered 10.5 ETH ($33,900) for any Doodles NFT. The project is backed by anonymous founders and investors, including NFT influencers like Colborn and Deeze.
OpenSea’s Challenges and LooksRare’s Opportunity
- OpenSea’s Outages: Recent technical issues, including a prolonged downtime, drew criticism from CEO Devin Finzer.
- IPO Speculation: Frustration grew after CFO Brian Roberts hinted at a potential IPO, dampening hopes for an OpenSea token.
👉 Explore Ethereum NFT trading platforms
FAQs
Q: How does LooksRare’s fee structure benefit users?
A: 100% of fees go to LOOKS stakers, creating a revenue-sharing model absent in OpenSea.
Q: What’s a vampire attack in crypto?
A: A strategy where a new platform lures users from competitors by offering token incentives.
Q: Can OpenSea reclaim its dominance?
A: While OpenSea leads in volume, LooksRare’s tokenomics and lower fees pose a serious challenge.
Conclusion
LooksRare’s explosive debut highlights the dynamic nature of NFT marketplaces, where user incentives and community-driven models can rapidly shift loyalty. Whether it sustains this momentum or OpenSea adapts remains a pivotal narrative for 2022’s NFT ecosystem.