Non-fungible token has been one of the buzzwords for 2021. The cryptocurrency market has been struggling to maintain its bullish momentum but the NFT segment continues to soar upwards. Almost every day, new high-profile figures and popular brands delve into the digital realm through NFTs as its popularity only appears to be growing upwards. However, there are a number of issues in the NT segment. One of the most major issues is a lack of competition. When one thinks of investing in the NFT segment, OpenSea is the name that comes to market. This monopoly leads towards inefficiencies as expected.
What is Looksrare & why is it gaining?
LooksRare is a new NFT marketplace that is designed to give OpenSea good competition. The NFT marketplace offers many features and advantages which has led to users flocking towards it and a sudden spike in its popularity. For example, while Opensea charges 2.5% fees on all sales including private sales, LOOKs marketplace only charges 2% on basic sales with zero fees on private sales. Moreover, the marketplace is completely powered by the community so 100% of the fee revenue goes to the community.
Looksrare is also using comprehensive incentive frameworks which are aimed at attracting active NFT users. So far, the strategy has worked well and the airdrops of the network have resulted in massive traffic on the marketplace. It has been beating OpenSea – one of the largest NFT marketplaces – in terms of daily volume, daily users and daily transactions.
Future outlook
LooksRare had been gaining upwards – on a steady uptrend. The cryptocurrency established a new all-time high at a price level of $7.07 yesterday; however, the cryptocurrency fell to market corrections after the ATH. The current price of $4.99 has fallen by nearly 30% from the ATH. On the other hand, the daily trading volume has been surging of the cryptocurrency despite its downtrend.
While the market corrections may be expected to last for a while, the long-term outlook of the cryptocurrency is bullish. According to the estimates of Digital Coin Price, LooksRare is expected at a price level of $14.23 in five years’ time. Given the strong fundamentals and the current hype around the token, it is possible for the token to realize its prediction. Even so, if the token fails to be a competitor to OpenSea it would like grow with the growth of the NFT sphere.
