When NFTs started taking off on Solana in August, there was a lack of marketplaces to trade them and a lack of data sites to monitor price changes. Solanalysis has carved out a niche for itself by tracking top NFT collections on the blockchain platform and making it easy to compare them.
Since then, the data site has added more features, such as the ability for users to track the value of their own NFTs. He also recently set up a launch pad for NFT projects to launch new collections.
Now it announces a rebranding, a recent fundraiser, and an NFT market aggregator designed to allow it to capture some of the NFT trading market.
Now known as Hyperspace (with a new domain Hyperspace.xyz), the site announced a $4.5 million seed round led by Dragonfly and Pantera Capital. Jump Capital, Solana Capital, NFX, Galaxy Digital, Shima Capital, Coinbase Ventures, Sfermion, 6th Man Ventures, Soma Capital, Social Capital, and Folius Ventures also participated.
The money was raised a few months ago but the round has only just been announced. Hyperspace also plans to do another raise in a few months.
Beyond that, Hyperspace is looking to sneak into the NFT trading market with an aggregator. The aggregator will allow website users to purchase NFTs from any of the major Solana NFT marketplaces. NFTs offered in all markets will be available for browsing in one place.
Hyperspace achieves this by interacting directly with the smart contracts for each of the NFT marketplaces – a tricky feat as they are all built slightly differently. But it allows site users to buy NFTs from any of these marketplaces without having to leave the website.
Hyperspace co-founder Kamil Mafoud says that when it comes to trading NFTs, there is always a buyer, a seller, and a site in the middle facilitating this interaction. “We want to be the platform in the middle,” he says.
At this time, Hyperspace will not add fees to any of these purchases in order to increase market share without adding friction, but may do so in the future. Buyers already have to pay fees to the trade-facilitating marketplace and to the NFT collection or artist if needed.
“Right now is growth for us. At this point, when we have concentrated so many eyeballs, we can think of adding fees on the aggregation side,” says Mafoud.
The bigger goal for Hyperspace, however, is to grab a slice of the NFT market. Its aggregator will also be a marketplace in its own right. As a result, users will also be able to directly list NFTs for sale on Hyperspace, which other Hyperspace users can buy.
The idea is that taking off as an aggregator could help it grow into a popular marketplace in its own right.
One of the challenges with this plan is that an aggregator is more likely to succeed in an ecosystem where NFT volumes are spread across multiple marketplaces – as users would need to be more careful to check prices across multiple marketplaces so as not to not miss a better deal.
However, on Solana, the NFT market was largely cornered by Magic Eden, which sucked up more than 90% of the deal flow. Therefore, there might be little demand for an aggregator at this time. But Mafoud remains imperturbable.
“Very highly concentrated liquidity will reduce the need for it, but the level of fragmentation is generally wavering,” says Mafoud. He speculates that Magic Eden could spread to Ethereum and OpenSea – the dominant NFT market on Ethereum – could expand to Solana. There could even be new entrants, like the NFT marketplace planned by Coinbase, he says.
“A lot today, a lot more focus, in a month you’re going to see even more fragmentation,” he says.
Will Hyperspace release a token?
Among the NFT markets, both on Ethereum and Solana, there has been a lot of interest in which platforms will launch tokens. On Ethereum, OpenSea seems to have gone a different route, while LooksRare is trying to hijack users with its own token. As for Solana, Magic Eden co-founder Zhuoxun Yin recently told The Block that the team is interested in the idea of a token but isn’t rushing to build one right away.
Hyperspace also seems open to the idea.
“We are very excited to be able to tie the power of a token to the platform. It’s one of the few gaps in Web3,” says Mafoud, adding that it’s very hard to win without one.
He says there are three important things: gaining market share, having a very good user experience and user interface, and getting the community to reinvest in the business. “And that’s probably what we’ll be looking to do,” he said.
Mafoud says the team is considering whether some market fees should go to a DAO run by his community. And there were discussions about what that would look like and what percentage of each transaction would be supported.
“I don’t know if becoming an NFT marketplace is the best thing to do. It’s very difficult to operate in Web3 under this build,” he says.
But when it comes to established markets like OpenSea, he can see that the reverse strategy could work – that there could be greater reward and less risk in going public, as opposed to the decentralized-style approach. crypto.
© 2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.