OpenSea, the leading non-fungible token (NFT) marketplace, is open to acquisition offers amid declining trading volumes and loss of market share to competitors like Blur.
In a recent interview, OpenSea CEO and co-founder Devin Finzer said “If the right partnership comes along, then that’s something we should certainly consider,” referring to potential buyout deals. However, he clarified the company is not actively seeking to be acquired currently.
OpenSea’s daily trading volumes have plunged 96% since early 2022, based on Dune Analytics data, as the NFT">NFT market collapsed. Rival Blur now boasts 5x OpenSea’s volume via user airdrops and incentives, despite OpenSea maintaining a larger user base.
The fall from OpenSea’s $13.3 billion valuation during the 2021 NFT mania has been steep. Top backer Coatue Management reportedly marked down its OpenSea stake by 90% recently.
Acquisition rumors have swirled amid OpenSea’s struggles, though Finzer declined to comment on possibilities like going public. He remains focused on improving user safety and trust after the significant NFT market comedown.
OpenSea has been an active acquirer in the past despite its turbulence, buying companies like crypto wallet Dharma, NFT aggregator Gem, and onboarding platform Mintdrop over the last two years.
Part of OpenSea’s strategy relies on attracting top entrepreneurial talent whose own NFT projects failed to gain traction but see OpenSea as a more stable home.
Finzer also highlighted OpenSea’s collaborations with luxury brands developing custom NFT drops as bright spots, reflecting rising mainstream interest in tokenized art and collectibles.
Though the NFT market has stumbled since early 2022 highs, data points to a possible recovery. NFT sales hit $405 million in October and Bitcoin NFT volumes topped $881 million in December, beating out Ethereum.
