- Coatue, one of the largest investors in OpenSea, reportedly slashed its interest by 90% in the second quarter.
- The hedge fund reduced its holdings from $120 million to $13 million, which takes OpenSea’s valuation to around $1.4 billion on paper.
- DappRadar data shows OpenSea continues to trail Blur.io in terms of sales volume.
More woes may lie ahead for NFT marketplace Opensea as a report from The Information revealed one of its largest investors marked down the value of its stake in the company by 90% in the second quarter of this year.
Indeed, the report noted that US-based hedge and venture fund Coatue has reduced its holdings from $120 million to $13 million. The markdown comes amidst a declining NFT market and marketplace competition that has seen OpenSea lose its market share.
Once rated the largest NFT marketplace in the world, OpenSea’s trading volume has declined severely as a dwindling number of NFT investors opt for rival marketplace, Blur.io. However, OpenSea has unsuccessfully tried to reclaim the top spot after reneging on earlier commitments such as royalty fee payments.
Last year, OpenSea was valued at $13.3 billion in a funding round co-led by Coatue and Paradigm. However, the report states that OpenSea’s valuation may now be $1.4 billion on paper.
Meanwhile, the troubles at the company have also led to a workforce slash. Days ago, the company announced it would lay off over 50% of its workforce as it tries to revamp a market share loss and an NFT trading slump.
Data from DappRadar shows OpenSea continues to trail behind Blur.io in terms of trade volume. However, OpenSea has recorded significantly more traders on its platform in the past 24 hours. Likewise, the number of sales has seen an upsurge in the same period.
Elsewhere, NFT popularity has been on a rapid decline following a crypto winter that dragged into 2023. DappRadar data shows NFT trading volume has dropped by 80% since March 2022. In addition, major NFT collections have also seen a considerable decline in their floor prices and monthly sales volume.
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