Why Did OpenSea Acquire The Best NFT Aggregator Gem.xyz?
The acquisition of Gem by OpenSea has followed a traditional path: when a rival appears, even if it isn’t currently a threat, the dominant company will immediately acquire/merge it to eliminate the threat.
The shopping cart, rarity, flash bot, and whales purchase notification are among the key features of Gem.xyz. These features keep Gem’s users up to date on the most widespread NFT market trends without being charged any fees, allowing them to have the opportunities to make profits during critical periods.
Many of these features have long been requested by the community, but the major NFT marketplace OpenSea has repeatedly ignored their requests. And as a result, Gem covers these gaps excellently.
Gem’s NFT data is fantastic as an aggregate. Gem has gathered approximately 246,000 ETH in trade volume since its debut in mid-December last year, more than twice as much as Genie, which began much earlier.
The main reason Gem has been able to grow so quickly is that it aggregates more mainstream NFT markets than Genie. Moreover, Genie had been inactive for a long period before integrating LooksRare in early April this year. Gem also has a leg up on Genie by combining Dune Analytics’ analytical data dial with its own anti-pinch bots.
Gem has effortlessly attracted users and secured a considerable market share, particularly among whales, because of its useful features. Gem, rather than LooksRare, may pose a significant threat to OpenSea. The current ratio of NFT purchases made through the aggregator Gem to direct NFT market purchases is 10:90. Despite the fact that OpenSea receives a large portion of the revenue, Gem diverts customers away from it, which the leading NFT marketplace absolutely does not want.
“After the acquisition, Gem will continue operating independently from OpenSea as a stand-alone product and brand. The Gem you know and love won’t change; and over time, we’ll bring key Gem features to OpenSea to make buying NFTs seamless and delightful for every experience level,” OpenSea wrote in the acquisition announcement.
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