- Rarible’s trading volume jumps by 585% after royalty commitment.
- OpenSea faces volume drops due to royalty enforcement rollback.
- Ethereum NFT projects experience royalties dip.
Rarible, a prominent NFT aggregator, recently declared its intention to cease aggregating orders from competitors that do not implement proper royalty systems, such as OpenSea.
The NFT marketplace Rarible has observed a significant increase in its trading volume within a 24-hour timeframe, following a public announcement demonstrating its support for maintaining royalties for NFT creators.
This development comes as rival NFT marketplaces like OpenSea have scaled back their support for royalties and the enforcement of such payments. This shift has prompted other NFT projects to reconsider their support for OpenSea as well.
Data provided by the analytics platform DappRadar reveals that Rarible’s fiat trading volume over a 24-hour period surged by nearly 585%, reaching a total of over $45,000 on August 23rd.
Do you think Rarible is right? 🤔
— DappRadar (@DappRadar) August 23, 2023
Although these figures appear modest when compared to those of its competitors during the same period, Rarible’s impressive surge in trading volume outperformed OpenSea and LooksRare. These two platforms experienced respective drops in trading volume of around 19% and 74% within the same 24-hour window. X2Y2, on the other hand, witnessed an 8.8% volume increase during that time.
The notable increase in Rarible’s trading volume follows a statement made by co-founder Alex Salnikov on August 22nd. Salnikov announced that Rarible “will no longer support marketplaces that disregard royalties,” and by September 30th, the platform will cease to aggregate orders from OpenSea, LooksRare, or X2Y2.
We support royalties.
We always have.
And we always will.
— Rarible (@rarible) August 22, 2023
Salnikov emphasized, “This realm revolves around redefining how creativity is valued and rewarded. We cannot idly stand by as that fundamental promise is eroded.”
In February, OpenSea decided to abandon the enforcement of NFT creator royalties, conceding ground to Blur, another popular NFT marketplace that doesn’t enforce such royalties.
On August 17th, OpenSea revealed its plans to discontinue its royalty enforcement tool, which allowed creators to blacklist marketplaces that didn’t uphold royalty enforcement. This decision was driven by a lack of adoption.
Meanwhile, Ethereum-based NFT projects experienced a decline in royalties earned, as indicated by July data from the analytics firm Nansen.