OpenSea was founded in the year 2017 and since then it has emerged as the largest NFT marketplace all over the world. OpenSea is a newly built NFT ( Non – fungible Token ) marketplace which is also the first in the world of its kind. NFT is basically a digital art like Paintings, music and many more things which are being sold online with the help of the latest technologies.
OpenSea recorded a massive 70 million dollars of NFT transactions on its platform in just 24 hours. These numbers are enough to know how much huge the OpenSea marketplace is ! The transactions in the OpenSea are generally done by the means of Ethereum. The NFT transactions on the Ethereum are a bit costly due to the applicable gas fees on it. Also, the fact is that the gas fees keeps on increasing gradually over the time which in turn, also increases the cost of the NFT transactions in the OpenSea market.
In simpler words, the Gas fees is a kind of service fee being charged by the corresponding network to process an NFT transaction. Gas Fees is charged as the cost of minting the NFTs using the block – chain technology. The gas fees also depends on the speed of minting the NFTs. If you want to mint your NFT in a lesser time, then you will have to pay a higher amount as the Gas Fees to the Marketplace and the crypto network that they are currently working on.
Gas fee is generally paid to the miners who mint the users’ NFTs into the marketplace. Also, the Gas produced is helpful in controlling spamming within the block – chain. So, indirectly or directly, the gas produced helps in maintaining the network security. So, the amount of gas produced by the miners can be directly proportional to the safety of the particular network. The gas also helps in making the NFT transactions even faster.
Gas fee involved in NFT transactions depends
- The current market price of the crypto currency.
- The complexities involved in the transactions.
- The number of people involved in the transaction.
The unit of Gas used in OpenSea market is GWEI. One GWEI equals to the one millionth part of an Ethereum or simply 0.000000001 ethereum. A minimum amount of 21,000 gas is required to complete an NFT transaction. The total gas fee included in an NFT transaction is calculated by multiplying the gas price ( in GWEI ) with the minimum amount of gas required.
The OpenSea marketplace charges certain charges by its users for minting and listing their NFTs. Firstly, the users will be charged for setting up their account on OpenSea marketplace for an amount of 70 – 300 USD. The second fees will be charged when the OpenSea will access your NFTs for approx 10 – 30 USD. However, these charges are not fixed and may vary depending on other factors. Also, when you sell your NFT on the OpenSea marketplace , you will have to pay 2.5 percent of the sale value to the OpenSea.
Now, considering these charges, listing and selling an NFT in the OpenSea marketplace can prove to be very costly for you. But there are few things to keep in mind which can lower your charges while listing and selling your NFT to the marketplace. To get started with OpenSea, first of all you need to set up your account on a browser wallet. According to reviews, Metamask is a very popular wallet to get started with OpenSea market. You will have to pay some initial charges for setting up your account on the OpenSea marketplace. You have to pay all the fees including the transaction fees in Ethereum.
On listing an NFT , you will see the total cost including the Gas fees which is quite high. But as you know that Gas fees also depends on the Speed of the transactions, you can lower the speed of the transactions to reduce the gas fees. You can choose the speed of your transaction by choosing the gas fees. The best gas fees that you should set is around 24 – 30 GWEI that will take around 15 – 17 hours to complete your transaction. This will also help you to save some cost on the Gas fees that you have to pay.
We hope that you will this article useful if you are new to the NFT marketplace. Stay tuned to our website for more of such useful and interesting content on Crypto, NFTs, Digital currencies etc. You will also get all the latest news regarding crypto and NFTs on our website.
How to reduce gas costs on OpenSea
If you are not in a hurry to enter your first NFT, you can reduce the price of gas by limiting it in your crypto wallet. If you use MetaMask, the proposed wallet for OpenSea, select the “Hundred” option for the transfer fee or go to Advanced Settings and enter the gas price and limit it manually. Remember that if you choose this option, you have to be patient as the transfer may not take several hours.
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If you know about Ethereum, the price of gas is very high (this will change in future with proof of storage, more on that later). When it asks you to confirm the transfer, it will show you the entire fee, including the gas fee.
Now you can change the price of gas (GWEI). Reduce gas prices, slow down transactions. Generally, gas prices will be almost below the threshold at the time of writing.
If you enter your 54 number as Gwei, this means it will take less than 30 minutes to confirm the transfer. The faster the transaction, the higher the price of gas. Since you want to reduce the transfer fee, you can enter around 25-30 Gwei. It took me about 17 hours to confirm the transfer when the network was down.
I would not recommend a 15-20 Gwei drop. Then it takes a long time to confirm the transfer. That way, you can reduce the initial cost of the transfer in OpenSea.
Cryptocurrency transactions are called blocks. The size of the block varies between blockchains. For example, the theoretical limit of a bitcoin block size is 4 megabytes but the average is closer to 1 megabyte.
Unlike Bitcoin, the Ethereum block size varies based on the amount of gas used in each block rather than the data limit. There is currently a limit of 30 million gas per block, but the target volume is 15 million gas per block. But effectively, your transfer “competes” with others to appear in another block that has been sent to the network for approval. Therefore, your competitors may pay a preferential fee (a guide) to increase the likelihood of their being transferred to you, which will increase the gas fee.
This “competition” in transactions due to network authentication is due to “network congestion” in the Ethereum blockchain. Network conjugation occurs when more and more transfers use the Ethereum network for authentication.
Transfers are on the rise as Ethereum has gained widespread success in public blockchain decentralized exchanges (DEXs), DeFi, blockchain games, social networking, ERC-20 token transfers, and markets.
In addition, dApps introduce new features, thus complicating their functionality. As a result, smart contracts have to perform more operations than ever before. Therefore, already limited ETH blocks become more crowded because complex transfers take up more space.