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Competitive Landscape

As Supernovas pursues an unique opportunity at the intersection of decentralized social media and NFT marketplaces, there is increasing competition from both sides.
The NFT market has been dominated by Ethereum-based OpenSea controlling 90%+ of transactions until January 2022. In early 2022 LooksRare reached a majority share of the market with lucrative reward systems for transactions, while also resulting in significant wash trading and eventual malicious activity. Meanwhile, smaller marketplaces, fostering a more artistic or decentralized niche, and Solana-based marketplaces, led by Magic Eden and Solanart, have been gaining traction. The beginning of 2022 has proven that new decentralized marketplaces can get significant traction, unfortunately also leading to questionable practices and incentives to fast-track growth.
Marketplace
Description
Volume (1/2022)
Users (1/2022)
OpenSea
Current market leader and biggest marketplace
~$7B
~1.5M
LooksRare
Newcomer with lucrative rewards selling inventory from other marketplaces governance
~$15B
~40k
MagicEden
The largest Solana NFT marketplace
~$650M
~1.1M
Solanart
The first Solana marketplace
~$50M
~160k
Foundation
Community-driven marketplace, with creators joining only by invite from the community
~$15M
~30k

Problem with current NFT marketplaces

The NFT market explosion has led to dizzying growth for the major market players, while also fostering a budding ecosystem of new players. Almost on a weekly basis, new projects are announced and launched with various levels of sophistication, execution, and credibility. Almost as frequently, reports indicate issues or suspicious activity from the platforms.
Mainstream adoption and healthier ecosystems with current NFT marketplaces, and Web3 in general, is currently hindered by multiple factors
  • High and unpredictable gas fees
  • Collection minting is costly and time consuming
  • Limited accommodation for larger files and new content formats
  • Lacking customized content discovery through social graph and engagement data
  • User experience is geared towards crypto user vs mainstream users
  • Lack of scalable and trusted user verification process
  • Missing multichain to bring all chains and communities under one roof
  • Social is separated from the marketplaces
  • Lack of real decentralization and transparency
  • Missing business and tokenomic models truly benefitting the community, not a subset of it
Supernovas is taking the initiative to address these issues, as the following table illustrates at a glance: