OpenSea acquires Gem in bid to attract professional NFT collectors

The world’s biggest NFT marketplace acquired Gem to grow its professional user base, looking to assert its dominance over the increasingly competitive LooksRare.

Visualization of the NFT market

In a statement released on Monday, OpenSea praised Gem’s pro user-friendly features, including a rarity-based collections ranking and the option to purchase multiple NFTs from different marketplaces with a single transaction.

Gem also facilitates a buying strategy known as floor sweeping, which allows an investor to buy a bulk of NFTs from a collection’s lower end.

Eventually, these features are going to be integrated with OpenSea, but the timeline has not yet been shared. For now, Gem will continue to operate as a standalone product. Both OpenSea and Gem believe the acquisition will speed up Gem’s roadmap and further drive NFT adoption.

The acquisition of Gem comes as OpenSea fights to uphold its market dominance amid growing competition, including from LooksRare, whose daily traffic has recently exceeded 3,000 users, and from Magic Eden, which runs on Solana.

Chart showing LooksRare users, volume and transactions over the last 30 days
LooksRare users, volume and transactions over 30 days. Source: DappRadar

OpenSea’s statement also suggested that the expulsion of Neso, a Gem developer accused of sexual misconduct, was one of the deal’s conditions, stressing that Neso “has never and will never be affiliated with OpenSea.”