OpenSea's NFT marketplace valuation drops 90%

The valuation of OpenSea's NFT marketplace has fallen by 90%

In October 2023, trading volumes on the OpenSea platform totaled $91.4 million, showing a decline of more than 98% from peak values

The valuation of NFT marketplace OpenSea dropped from $13.3 billion to $1.4 billion after one of its largest investors, New York-based venture capital firm Coatue Management, revalued its stake in the crypto startup by 90%, from $120 million to $13 million, The Information reported.

In January 2022, the monthly trading volume on the NFT marketplace OpenSea exceeded $4.8 billion, showing a historical record for the entire existence of the platform, according to data from the analytical service Dune Analytics. At the same time, the crypto startup attracted $300 million in investments from Paradigm and Coatue, as a result of which the valuation of the marketplace exceeded $13.3 billion.

According to the analytical service The Block Research, in October 2023, trading volumes on the OpenSea platform amounted to $91.4 million, showing a decline of more than 98% from peak values. OpenSea's closest competitor, the Blur marketplace, is gradually taking over the NFT market share, demonstrating twice as high trading volumes in October.

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In early November, the platform announced plans to cut 50% of its staff due to a change in the marketplace's development course.

Since the beginning of November, the Blur token (BLUR) has risen by more than 50%, with more than 30% growth occurring after OpenSea announced the cuts. The marketplace is preparing to distribute 300 million tokens to users in an airdrop expected on November 20.