OpenSea’s 7-Year Rise and Fall: Can the NFT Giant Revive Its Glory With a Token?

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For seven years, OpenSea has stood as a defining force in the NFT ecosystem — from humble beginnings to becoming the undisputed marketplace leader, only to later lose ground amid fierce competition and shifting market tides. Now, in a bold move that has reignited interest across the crypto community, OpenSea has announced the public test of OS2 and the launch of its native token, SEA, with strong hints of an upcoming airdrop.

This moment marks a pivotal chapter not just for OpenSea, but for the entire NFT landscape. After years of decline and mounting pressure from rivals like Blur and Magic Eden, the platform is betting on tokenization as its path to revival.

The Birth of an NFT Titan

In 2017, Devin Finzer and Alex Atallah entered Y Combinator with Wificoin, a project designed to let users pay for shared WiFi using cryptocurrency — an idea far removed from what would eventually define their legacy.

That same year, Dapper Labs launched CryptoKitties, a blockchain-based game that sparked widespread fascination. Rare digital cats were selling for tens of thousands of dollars, clogging the Ethereum network and capturing global attention. More importantly, it introduced the world to non-fungible tokens (NFTs) — unique digital assets verified on-chain.

The release of EIP-721, later formalized as ERC-721, provided the technical standard that made interoperable NFTs possible. Recognizing this breakthrough, Finzer and Atallah pivoted instantly. In February 2018, they launched OpenSea, envisioning it as “the eBay for crypto goods.”

At the time, NFTs were little more than a niche experiment. Yet OpenSea wasn’t alone. Rare Bits, another early entrant, launched around the same time with a similar vision — and a significant advantage: $6 million in funding compared to OpenSea’s $2 million seed round from backers like 1confirmation, Founders Fund, and Coinbase Ventures.

But funding wasn't everything.

👉 Discover how early strategic decisions shaped the future of NFT trading.

While Rare Bits pursued aggressive user acquisition with zero fees and gas refunds, OpenSea adopted a leaner, more sustainable model — charging a modest 1% transaction fee (later increased to 2.5%). This decision proved crucial during the 2018 crypto bear market, when many startups collapsed under unsustainable costs. By staying focused on core NFT trading and avoiding diversification into unrelated virtual goods, OpenSea survived while Rare Bits faded into obscurity by 2020.

Despite survival, growth remained slow. By early 2020, the team had only five members and monthly revenue hovered around $28,000. Without a $2.1 million lifeline from strategic investors like Animoca Brands in late 2019, OpenSea might have vanished before its moment arrived.

The Bull Run That Changed Everything

The second half of 2020 brought renewed momentum to crypto markets — and OpenSea was perfectly positioned to capitalize.

As DeFi surged in popularity, NFTs began gaining traction beyond niche collectors. The platform's "lazy minting" feature — introduced in December 2020 — allowed creators to list NFTs without upfront gas costs. Only upon sale would the item be minted as an ERC-1155 token on-chain.

This innovation drastically lowered barriers to entry. Combined with OpenSea’s open marketplace policy (no approval required), it enabled unprecedented creator participation. Artists, musicians, brands, and developers flocked to launch digital collectibles across categories: art, domain names, virtual land, trading cards, music, and avatars.

By early 2021, NFTs exploded into mainstream consciousness. Major celebrities, sports leagues, and global brands like Budweiser entered the space. CryptoPunks transitioned from obscure experiments to cultural icons. And OpenSea rode the wave.

Transaction volume skyrocketed:

With success came validation. In March 2021, OpenSea raised $23 million from a16z, marking institutional confidence in its dominance.

At its height, OpenSea processed over 90% of all Ethereum-based NFT trades and reached a valuation of $13.3 billion in 2023.

The Turning Point: When OpenSea Chose IPO Over Token

Amid this golden era, a controversial decision sowed the seeds of decline.

In December 2021, Bloomberg reported that Lyft’s former CFO, Brian Roberts, joined OpenSea as CFO — with plans for an IPO. While Roberts later clarified there was no immediate IPO plan, he notably said nothing about issuing a token.

To the Web3 community, this silence spoke volumes.

Many believed OpenSea should reward its loyal users with a native token — a common practice among decentralized platforms. Instead, choosing a traditional exit path felt like a betrayal of Web3 principles.

Competitors seized the opportunity.

Enter the “OpenSea Killers”

Though short-lived, LooksRare proved one thing: OpenSea was vulnerable.

Others followed:

Each carved out niches or improved UX — but none struck harder than Blur.

Blur vs. OpenSea: The New King Rises

Launched in October 2022 after an $11 million raise, Blur redefined the NFT trading experience.

Unlike OpenSea’s eBay-style interface, Blur looked more like a professional exchange:

And then came the killer feature: airdrops tied to trading activity.

Blur promised massive token distributions to active traders — not just sellers, but bidders too. The mystery box-style rewards created FOMO-driven trading frenzies. Traders flooded in, chasing future BLUR tokens.

Results were dramatic:

Even as the broader crypto market slumped into bear territory, Blur thrived — fueled by speculative trading and yield-chasing behavior.

By 2024, OpenSea’s market share had plummeted to just ~29% over the past 30 days (per nftpulse), while Blur held steady above 44%.

Its valuation fell from $13.3 billion to around **$1.5 billion**, and reports emerged that the company was exploring acquisition options.

The Comeback Plan: OS2 and SEA Token

Now, after years of retreat, OpenSea is fighting back — with both product innovation and tokenomics.

Introducing OS2 and SEA

OpenSea unveiled OS2, a redesigned platform built for speed, scalability, and multi-chain support. Key features include:

And most critically: the introduction of SEA, OpenSea’s native utility and governance token — likely to be distributed via airdrop.

Could SEA Flip the Script?

OpenSea is essentially using Blur’s playbook against it:

Already, signs are promising:

👉 See how token incentives are reshaping user loyalty in NFT marketplaces.

Will History Repeat Itself?

OpenSea’s journey reflects the evolution of NFTs themselves — from curiosity to hype cycle to maturation.

Its current strategy hinges on three pillars:

  1. Product excellence (OS2)
  2. Token-driven engagement (SEA)
  3. Multi-chain expansion

If executed well, SEA could do more than revive OpenSea — it could help reinvigorate the entire NFT sector.

However, challenges remain:

Frequently Asked Questions (FAQ)

Q: What is the SEA token?
A: SEA is OpenSea’s newly announced native token. While full details are pending, it is expected to serve as a utility and governance token within the OS2 ecosystem, potentially used for staking, fee discounts, and voting on platform upgrades.

Q: Will there be an OpenSea airdrop?
A: Yes — OpenSea strongly hinted at an upcoming airdrop tied to SEA. Though exact eligibility criteria haven’t been released, historical trading activity on the platform is likely to be a key factor.

Q: How does OS2 differ from the current OpenSea?
A: OS2 offers faster performance, lower fees (0% transaction fee), enhanced cross-chain functionality (supporting 14+ chains), and a UI tailored for professional traders — resembling platforms like Blur.

Q: Can OpenSea beat Blur?
A: It’s possible. With SEA incentives and OS2 improvements, OpenSea can attract traders back. However, Blur maintains technical advantages in execution speed and gas optimization. The outcome depends on how compelling SEA’s rewards are at launch.

Q: Is OpenSea still relevant in today’s NFT market?
A: Absolutely. Despite losing market share, OpenSea remains one of the most recognized NFT brands globally. Its move toward tokenization signals renewed ambition and could position it as a central player once again.

Q: What does SEA mean for multi-chain NFT adoption?
A: By supporting 14+ blockchains including Solana, Bitcoin (via Soneium), and Flow, SEA could act as a unifying force across fragmented NFT ecosystems — potentially becoming a cross-chain governance or incentive layer.

👉 Stay ahead of the next major crypto movement — explore where NFTs go from here.

OpenSea’s story is far from over. Once the undisputed king of NFTs, it fell not due to failure — but hesitation at a critical moment. Now, with OS2 and SEA, it has a chance to reclaim its throne.

Whether it succeeds will depend not just on technology or tokens — but on whether the community believes in its vision again.

One thing is certain: the battle for NFT supremacy is reigniting. And this time, everyone’s watching.