Although it has only been launched on Solana for more than a year, Tensor has shown a strong rise as it is now the leading NFT Marketplace platform on Solana. In this article, let’s join Weakhand to learn about Tensor NFT Marketplace and see what the project has done in the past.
Before entering this article, you can refer to some of the following articles to understand better.
- What is Tensor? Tensor cryptocurrency overview
- What is NFT Marketplace? Operating mechanism and some prominent NFT Marketplaces
- NFT Marketplace War and the ultimate winner
- What is Magic Eden? Magic Eden cryptocurrency overview
What is Tensor NFT Markeplace?
Tensor is an NFT Marketplace platform deployed on Solana, providing many support tools for users to trade NFTs more easily such as: K-line chart of NFT floor prices, Listing/placing activity statistics bid price, Order book chart,….
Tensor has two main products: Tensor Aggregator and TensorSwap. Combining two products on one platform smoothly helps the amount of liquidity on Tensor increase significantly, this has long been a weakness in the NFT market and Tensor has done very well to improve this. .
With Tensor Aggregator: Liquidity is aggregated from all current NFT trading markets on Solana such as: HadeSwap, Magic Eden, Solanart,… Tensor does not charge any transaction fees, the amount of fees users pay comes from NFT Original Marketplace. For example, if Magic Eden charges 2%, the total fee paid by the user is 2%.
With TensorSwap – this is an AMM NFT built by Tensor itself. TensorSwap applies the Concentrated Liquidity AMM model (concentrated liquidity AMM), which is also the trend that current AMM Dex such as: PancakeSwap, Uniswap V3,… are applying with the advantage of bringing a large amount of liquidity as well as like helping LPs receive more fees for providing liquidity.
Tensor NFT Marketplace
Since launching the private beta version in June 2022 and opening Public 1 month later. To date, Tensor has established itself as the leading NFT Marketplace platform on Solana. At its peak, there was a time when trading volume on Tensor even surpassed Blur and OpenSea to lead the NFT trading volume in the market.
Tensor And Magic Eden: Who Is The Leader?
When comparing 2 NFT Marketplace platforms, there are 2 data that I use to evaluate including: Trading volume and number of users. I will also take a slightly distant timeline from 3 to 6 months to get an overview and avoid noisy data in the short term.
Statistics on NFT Marketplace data on Solana in the last 3 months
Regarding the trading volume of the two platforms, in the last 3 months, Tensor reached 1.37M Sol, accounting for 43.48% of the market share while Magic Eden reached 1.39M Sol, accounting for 44.4% of the market share on Solana. While in terms of the number of active wallet addresses in the last 3 months, Tensor is slightly better with 145.04k Users while Tensor only has 121.88k Users.
Statistics on NFT Marketplace data on Solana in the most recent 6 months
Regarding the trading volume of the two platforms in the last 6 months, Tensor is slightly better with 3.75M Sol accounting for 43.21% market share while Magic Eden reached 3.73M Sol accounting for 43.07% market share on Solana. Magic Eden’s 6-month user volume is still slightly higher with 225.07k Users while Tensor only accounts for 163.2k Users.
Through the above two statistical data, we can see that the transaction volume of the two platforms is not significantly different and can be considered equal, but in terms of number of users, Magic Eden is significantly better. This shows that Tensor is used more by traders and large traders while Magic Eden is used more by small investors.
This is also shown through the interface of the two products when Magic Eden supports an easy-to-see interface, NFT attributes/images in the collection are clearly displayed,… while Tensor supports Many analytical charts are more suitable for professional investors and whales.
Through this, we see that the battle between Tensor and Magic Eden is quite similar to Blur and OpenSea. The only difference is that the war between Tensor and Magic Eden is not over yet and Magic Eden still has a slight advantage in the number of users. But at the present time, one thing that Tensor has not done is launch tokens and Airdrops in batches like what Blur has done.
At the present time, Tensor still offers Airdrop activities but I feel it is not strong or attractive enough for users. So if Tensor launches tokens and has large Airdrops, I am confident that there will be a large number of users and volume flocking to Tensor to farm points like the way it works on Blur, which is an extremely good prospect. for Tensors in the future.
What Causes Tensor to Be So Successful?
Although it is a latecomer platform and has only been operating on Solana for more than 1 year, Tensor is gradually asserting its position as the leading NFT Marketplace platform on Solana. So what is the reason why Tensor is so successful? I will give some reasons as follows:
Fast speed, low transaction fees
Tensor offers users an NFT Marketplace platform with fast speeds, smooth scrolling and tab switching. This overcomes Magic Eden’s disadvantages with tab switching and surfing being delayed quite a bit. Additionally, its implementation on Solana offers low transaction costs, giving Tensor an added advantage over other NFT Marketplaces on Ethereum or Polygon.
Apply a decentralized governance model
Tensor applies DAO into its governance model. This means that the ownership and operating rights of the platform belong to the users. This decentralized governance method ensures user participation and decision-making power in the platform development process, thereby establishing a fair and transparent ecosystem.
This is extremely important to help the project and the community bond together throughout the product construction and development process. Let’s look at the case of Opensea as a centralized platform and ignore community contributions. This has caused many users to leave OpenSea because they find the products that OpenSea offers are no longer suitable for them and look for a more suitable NFT Marketplace such as Blur.
Rewards for active people
Tensor also applies a Point calculation mechanism for users on its platform and rewards users who are active on Tensor. Although in my opinion the reward is not really attractive, this will be a great source of encouragement to help users continue to use Tensor in the future.
Exploit customer files and continuously update products
At the present time, it is very difficult for an NFT Marketplace to compete directly with OpenSea and Blur. Tensor NFT Marketplace choosing Solana is a reasonable decision. We also see that most NFT collections on Ethereum have higher prices than other Blockchains such as Polygon or Solana and this will be a barrier for users with small capital.
Therefore, deploying on Solana will help Tensor have a smaller customer base and minimize direct competition with OpenSea and Blur. In addition, if Tensor aims to develop Cross Chain and attack Layer 2 such as: Arbitrum, Optimism, Base,… then they will be able to expand the customer base on their platform.
In terms of products, Tensor also regularly updates new features on its platform such as: Yolo Buy – allows users to place a small amount of Sol in the lottery for the opportunity to earn NFTs, Trait Bird – allows Users bid on NFTs with specific characteristics, view the offer history of NFTs, receive notifications when the NFT exchange price moves a certain percentage, etc.
The Future of Tensors in the NFT Market
The rise of Tensor on the Solana Blockchain represents continued market growth in the NFT sector. The platform leverages Solana’s high throughput, low transaction fees, and community engagement to successfully attract a diverse user base including NFT creators, collectors, and traders.
However, being successful in a highly competitive market like NFT is not easy. Therefore, Tensor NFT Marketplace needs to focus on some key aspects in the future as follows:
- First, user experience is extremely important. To attract more users, the platform must continuously improve the interface and trading experience to ensure users can use it easily and feel comfortable with its products.
- Second, close cooperation with the community will be the key to the project’s success. Working closely with artists and creators and providing innovative services will attract more collectors and creators to the Tensor NFT Marketplace.
- Third comes from multi-chain compatibility, this may be a future trend that most NFT Marketplaces will adopt. By connecting and supporting many different Blockchains, Tensor will help expand its user base, thereby increasing the appeal of the platform.
- Finally, looking at NFT Future allowing users to go long/short with NFT is a promising option. This is a relatively new field and if Tensor successfully implements it, it will certainly attract more traders and speculators, and bring more life to the platform.
summary
Since coming to Solana as a dark horse, Tensor is now transforming to become the leading NFT Marketplace platform on Solana. Above is the information that I want to introduce to everyone in this article. I hope everyone has received useful knowledge.
