NFT marketplace OpenSea is preparing to launch an upgraded platform in December, aiming to renew user engagement as NFT market activity remains low. OpenSea's CEO, Devin Finzer, announced the platform overhaul on November 4 via X (formerly Twitter), describing it as a rebuild "from the ground up."
Finzer directed users to a waiting list, encouraging them to connect their crypto wallets but did not provide additional specifics about new features. OpenSea's relaunch comes during a challenging period as the platform contends with decreased trading volumes and regulatory scrutiny.
The announcement sparked excitement within the NFT community, with speculation over potential new features that OpenSea's revamped platform might offer. DappRadar communications manager, known as "nederob" on X, highlighted user anticipation. However, he noted the unlikelihood of a token airdrop due to OpenSea's U.S. base and potential regulatory constraints.
He suggested the update could introduce features like account abstraction, NFT shared ownership, memecoin trading, and SocialFi elements. OpenSea's integration of advanced functionalities could broaden its user base and appeal amid a prolonged market downturn.
Market watchers see these enhancements as a potential boost for OpenSea, which has struggled to maintain its peak trading levels. In early November, OpenSea's weekly trading volume rose by 60%, reaching over $50 million, though volumes remain significantly lower than the 2021-2022 boom period.
While OpenSea's trading volumes have risen again recently, they are lower than before the market crash. Dune Analytics also reported that the volume of monthly transactions fell to $46 million in October, a 99% decrease from its peak of $5 billion in January 2022.
The NFT market however has not been able to bounce back to the exponential growth seen in 2021 due to declining sales manufacturing and interest in digital assets.
OpenSea's refocusing is a return to providing more comprehensive services and improving features that can generate the interest of a more active audience. However, the market is still threatened by general economic declines and increased regulatory reforms in the United States region.
The newly announced platform upgrade comes after a tumultuous year for OpenSea, where the company laid off its staff at the end of 2023 and received a Wells notice from the US Securities and Exchange Commission (SEC) in September.
According to the information received from the SEC, OpenSea may violate the provisions of federal securities laws and get under enforcement proceedings for allegedly providing trading facilities in unregistered securities. The firm has previously criticized targeting NFTs as prejudicial to developing digital creators and detrimentally affecting the advancement of the industry.