NFT Marketplace X2Y2 Eats Up LooksRare’s Share of the Market With More Than 30% Volume

Wash traders boost X2Y2 transaction volume high making it second most popular platform in May behind OpenSea after eating on LooksRare’s market share.
Image source: X2Y2

Quick take:

  • The X2Y2 NFT marketplace recently surpassed LooksRare as the second most popular platform by transaction volume.
  • The highly incentivised platform has been eating on LooksRare’s market share over the past 30 days.
  • X2Y2 now accounts for more than 30% of transaction volume according to Dune Analytics’ @zxsasha.

X2Y2 is now the second most popular non-fungible token (NFT) marketplace in the market behind OpenSea. The highly incentivised NFT platform has eaten a substantial chunk of LooksRare’s market share to account for more than 30% of the total NFT transaction volume.

Just 30 days ago, LooksRare:X2Y2 NFT transaction volume ratio was about 91:9. However, as of this writing, the tables had nearly completely reversed to about 16:84 in ETH volume, according to an NFT analytics dashboard shared by @cryptuschrist on Dune Analytics.

Source: @cryptuschrist Dune Analytics

X2Y2 debuted in February, launching a vampire attack on existing platforms. However, while it initially had an effect on OpenSea, transaction volume statistics since March indicate that LooksRare has been the largest victim of the vampire attack.

X2Y2 transaction volume spiked in May after it launched a 0.5% fee on all transactions for the entire month. The company also announced that 100% rebates will be shared among sellers. This created an extra incentive for traders.

As a result, its transaction volume rose rapidly to account for 30% of the market share as of May 29, according to an analytics dashboard provided by @zxsasha on Dune Analytics.

Source: @zxsasha Dune Analytics

Nonetheless, both LooksRare and X2Y2’s incentivised platforms are prone to high levels of wash trading. As result, @zxsasha explains why the present transaction volume is not a realistic representation of the actual market share.

Another dashboard by @hildobby indicted that while OpenSea is still the biggest platform in dollar terms, LooksRare is second.

The data also shows that NFT transaction volume has declined significantly since the start of May. 

Source: @hildobby Dune Analytics

In such circumstances, a few wash traders could significantly boost the market share of the incentivised platform against its rivals. 

This could be the reason why X2Y2 ETH market share seems to have spiked in the last 30 days.

Therefore, with X2Y2’s highly incentivise month coming ending, traders can expect a significant decline in total transaction volume, with X2Y2’s ETH market share also falling as wash traders lack the incentive to continue their activity.

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