New Ethereum-based NFT marketplace LooksRare is making waves just days after its launch by generating over $385 million in trading volume since launching on Jan. 10.
By offering only 2% fees on basic sales and zero fees on private sales, LooksRare seems to be doing a pretty good job of drawing traders away from the leading NFT marketplace Opensea, which charges 2.5% fee on every transaction. LooksRare also allows traders to earn rewards in the form of its native LOOKS token for trading NFTs.
The major NFTs that have taken LooksRare by storm are the Meebits collection. These NFTs come from LarvaLabs, which is also the creator behind Cryptopunks and Autoglyphs.
Source: looksrare.org
Well, though the trading volume on LooksRare reached almost 50% of that of Opensea, the number of traders is quite smaller, only 5,000 compared to Opensea’s 260,000. This indicates that a small group of traders dominate the platform, who are buying and selling NFTs to themselves to reap the rewards.
Interestingly, DappRadar has included a disclaimer to point out the potential wash trading happening on with Meebits on LooksRare.
"Since trading on LooksRare is beneficial right now, the organic volume will continue to transfer over from Opensea. As this happens, the amount of wash trading will hopefully organically decrease, as those looking to employ it would be sharing rewards with people that aren’t there to only farm tokens." wrote Dappradar
Well, with a slicker UX and a more visible business ethic, LooksRare has entered strongly in the market to compete and looks set to capture some market share. It’s going to be interesting to see LooksRare's a much more transparent, decentralized, and user-friendly platform, plays out in the coming time.
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