Top nft creators Yuga Labs and Bored Ape Yacht Club reconsider listings on dominant platforms Blur and OpenSea, defying recent royalty cuts.
Major players in the non-fungible token (nft) space, including Yuga Labs Inc., creators of Bored Ape Yacht Club and CryptoPunks, along with the Pudgy Penguins collection, are reevaluating their partnerships with dominant marketplaces like Blur and OpenSea. Some are suspending new listings or contemplating such actions, according to reports from nft-makers-mutiny-against-blur-opensea-over-sinking-royalties?utm_source=telegram&utm_content=crypto&utm_medium=social” target=”_blank” rel=”noopener”>Bloomberg.
This year, both Blur and OpenSea have significantly reduced the royalty percentages that creators receive from secondary market transactions, as they aim to increase transaction volumes in the declining nft market. According to the data analysis firm ai/articles/a-nansen-look-at-nft-royalties-1″ target=”_blank” rel=”noopener”>NansenRoyalties in September amounted to a modest $2.4 million, a stark contrast to January’s high of $269 million.
The nft Market Landscape Changes Dramatically
Yuga Labs has taken the initiative to stop the trading of its new nft collection, Mara, on Blur and OpenSea, stating that only marketplaces that maintain adequate royalties will have the privilege of listing their tokens. The company even announced job cuts in light of the adverse market conditions.
Blur originally broke into the market with its competitive low fee structure, quickly overtaking OpenSea and forcing the latter to re-evaluate its fee policies. As of now, Blur’s base royalty fee is set at 0.5%, while OpenSea has moved to optional creator fees. Together, these platforms are responsible for around 70% of all nft/marketplaces?range=week” target=”_blank” rel=”noopener”>nft Transactions.
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Top 5 nft Markets by Weekly Trading Volume
Amid declining royalties, many projects are expanding into different markets, such as games or physical collectibles. For example, Pudgy Penguins has branched out into merchandising. This year, product sales have raised $7 million, in stark contrast to the mere $300,000 earned from nft royalties.
As of now, Yuga Labs and Pudgy Penguins’ top collections account for a staggering two-thirds of this year’s nft trading volumes. Needless to say, a possible withdrawal of conventional platforms will likely have a significant impact on the overall market.
