LookRare and OpenSea are considered rivals in the market. In fact, there was a time when analysts pointed out what really made LooksRare superior: the launch of the LOOKS token.

However, more than a month after launching the NFT market, LooksRare is not looking too good.

Retrospective

At the time of writing, LOOKS is trading at $1.58, down 0.4% over the past 24 hours. However, a broader observation shows that the situation is quite dire. A few days after its launch, LOOKS reached an all-time high of almost $7.1. Since then, the token has steadily declined.

Source: Trade View

Additionally, the positively weighted sentiment is a good indicator of a decline in this asset. The indicator has mostly remained below zero since mid-February.

Weighted Psychology (Pink) | Source: San base

According to Santiment’s analysis of LOOKS, there is a lot of FUD surrounding the founders’ WETH positions and how to exit their positions.

In terms of active addresses, we can see that the metric has now fallen below 100 from a peak of over 7,500 active addresses in early January.

This is an indication of pronounced stagnation and reinforces claims of wash trading in this NFT market.

Number of active addresses (red) | Source: San base

Another factor to keep in mind here, however, is the supply on the exchanges, as this partly shows the investor’s and the whale’s plan towards LOOKS.

Interestingly, the supply of on exchanges has steadily increased by millions since its launch, but posted a sharp drop on February 14th, suggesting that investors bought more when they thought prices had bottomed.

Since then, the supply on the exchange has changed a lot, but has remained between 9 and 11.2 million.

Offer on the stock exchange | Source: San base

It’s also worth noting that the top holder of the token – “LooksRare: Token Distributor” – owns around 58.87% of the total supply at press time. This number is worth about $380,270,680.

OpenSea has stalled

So far, not only LOOKS has problems. OpenSea ended January 2022 with a record monthly volume. But on February 20, the market recorded its lowest daily volume since Christmas 2021.

One possible reason for this is rumors that OpenSea has been hacked, leading to widespread panic in the NFT trading community.

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