OpenSea, the well-known NFT marketplace, has raised a round of $ 300 million at a valuation of $ 13.3 billion. Newbie spread the news yesterday in front of the company Confirmed the transaction.
For critics of today’s crypto-economy and the NFT market, perhaps the round was further evidence of how overheated things have gotten. After all, OpenSea last increased to a fraction of its revaluation less than a year ago, Adding $ 100 million to his accounts, valued at $ 1.5 billion in July.
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That kind of valuation appreciation must indicate prohibitive speculation between asset classes, right? Well let’s find out.
OpenSea is a pretty easy business to understand. As I wrote about my winter vacation, the company is making a 2.5% transaction cut for its service. This means we can keep track of its aggregate trading volume and make basic estimates of its size.
Can we get accurate Lower Austria. Can we learn enough to better understand why OpenSea managed to get such a great check and rating? Yes I think so.
I want to find out how the new OpenSea valuation is doing with their earnings. From there we ask whether the company feels underpriced or overpriced. This will be a fun journey of collecting data and doing little math magic. Let’s think about it!
OpenSea’s NFT business
The easiest way to get a handle on the magnitude of OpenSea is to simply check the 30-day trailing trade volume and apply its 2.5% take rate to the total. Per Crypto data source Dappradar, OpenSea had a trading volume of $ 2.91 billion in the past 30 days. This corresponds to an expected gross profit of OpenSea of 72.75 million US dollars.
That’s a month, mind you. If we take that single period of time and multiply it to generate an annual run rate number, OpenSea would be on track to hit $ 34.92 billion in volume and over $ 873 million in gross revenue 12 months to achieve.
There are other ways to get your hands on the size of the company. Data by Dune Analytics collected by @ rchen8 has to analyze more detailed historical data. OpenSea recorded $ 3.25 billion in trade in December, $ 2.37 billion in November, and $ 2.64 billion in October, according to Dune. Together, those numbers add up to $ 8.26 billion, of which a 2.5% cut would be worth $ 206.5 million.
If we extrapolated that final number over a full year, it would increase to $ 826 million in annual mileage. That’s pretty close to our first figure of an annual running rate estimate of $ 873 million for OpenSea’s gross sales, assuming the company’s flat-rate percentage cost translates into the market as expected.
Let’s say the company has an annual run rate of $ 850 million, which is between our two estimates of the company’s recent revenue growth projected over a full year. At a valuation of $ 13.3 billion, OpenSea is only worth 15.6 times its current execution rate. That’s not exactly crazy for today’s market.
