Rarible, upon taking the decision to cut ties with non-fungible token (NFT) platforms that have cut creator fees, has witnessed a significant surge in trading volume.
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Rarible’s resounding response in the market
NFT marketplace Rarible has made headlines with a staggering 585% increase in trading volume within a mere 24-hour span. This impressive growth was spurred by the platform’s public declaration to champion the rights of NFT creators by ensuring they receive their due royalties.
While Rarible’s recent numbers might seem modest when juxtaposed with its rivals, the platform’s growth trajectory is undeniable. In stark contrast, market giants OpenSea and LooksRare reported trading volume dips of 19% and 74%, respectively, over the same 24-hour period. Another competitor, X2Y2, managed a modest 8.8% increase.
Creators are the pillars of NFTs
Rarible’s co-founder, Alex Salnikov, didn’t mince words when he announced the platform’s renewed commitment to royalties. He emphasized that the NFT space was conceived as a revolutionary arena where creativity is both valued and rewarded.
Salnikov’s sentiment was clear: he refuses to be a passive observer while the foundational promise of the NFT space is eroded. By the end of September, the company will cease aggregating orders from platforms like OpenSea, LooksRare, and X2Y2, all of which have been lax in their approach to royalties.
The royalty rundown
OpenSea, once a staunch supporter of NFT creator royalties, made the controversial decision to abandon this commitment in February. This move was perceived by many as a capitulation to Blur, another NFT marketplace that doesn’t enforce creator royalties.
However, the recent OpenSea announcement revealed their plans to discontinue the royalty enforcement tool due to low adoption rates by their users. The proposal was met with disappointment and has led to a significant shift in the NFT industry, from which Rarible is coming on top by refusing to align with such decisions.
Zooming out: a wider context to the implications of such decisions
Recent data from analytics firm Nansen underscores a worrisome trend: royalties from Ethereum-based NFT projects have dropped to a two-year low as of July. While OpenSea’s claim of low adoption rates for their product seems to be validated by this data, it appears that users are willing to tolerate a temporary dip in royalty collections in favor of a broader market strategy, as shown by Rarible positive market reaction.