The term refers to the competitive advantage gained by a company over its competitors by launching a product or service in a new and unexplored category or industry.
The Long Explanation
It refers to the company’s ability to attain a competitive advantage by launching a product or service in a new and unexplored category, market, or industry.
By making this move, the company gets an unchallenged opportunity to acquire market share, brand recognition, and customer loyalty before other companies launch their own products or services and become competitors.
One of the finest examples of first mover advantage in the NFT space would be OpenSea. Established in 2017, OpenSea became the “world’s first and largest marketplace for NFTs”, and now has around 97% market share.
OpenSea now has over 600,000 users, and 2 million+ collections, containing more than 80 million NFTs.
Despite the launch of many other new NFT marketplaces, like Mintable, Nifty Gateway, etc., OpenSea continues to be the indisputable leader, thanks to its first mover advantage.