Prices for the Bored Ape Yacht Club have reached a two-year low, while prices for other high-profile projects have recently fallen significantly. As Blur NFT prices plunge, traders are increasingly opposing the incentive trading model of the new market, which overtook OpenSea as the leading Ethereum NFT trading platform in volume in February.
The increase in blur was short-lived.
Blur has reinforced the notion that NFTs, which can represent assets such as artwork and in-game items, are not unique, but are simply “altcoins with pictures.”
Blur, launched last October as a new marketplace, has established itself as a platform for professional NFT traders and has teased a token giveaway that would make using the platform more profitable than OpenSea and other competitors.
When the BLUR token finally appeared in February, Blur immediately overtook OpenSea to become the top marketplace in terms of crypto payment volume.
But this reward model immediately sparked controversy in some corners of the NFT world. Traders quickly began swapping NFTs to earn rewards, treating Bored Apes and Otherside parcels of land as fungible tokens. Trading volume on Blur skyrocketed, pushing the total market figure to over $2 billion for February.
Overall market trading has plummeted in recent months, and whale traders who were masters at the reward model at first are now losing money and/or withdrawing their funds from the NFT Blur staking pool.
Did Blur Really Crash the NFT Market?
Trevor Owens, general partner of the Bitcoin Frontier Fund, wrote on Tuesday that marketplaces are vying for control of the project’s price “floor” or cheapest NFT listing, and that Blur’s tactics have hurt the market. Blur is spending tens of millions of dollars on airdrops to lower the bar.
Tishun “Pacman” Roquerre, founder of Blur, tweeted on Wednesday afternoon that “some floor prices have risen and some have declined” since the marketplace launched last October. He also pointed to last week’s controversial launch of Azuki Elementals collection to take liquidity out of the NFT market.
“One of the few times the floor prices rose at the same time was when we injected liquidity into NFTs through our airdrop,” he wrote. “One of the few times the bottom prices were down at the same time was when $40 million of liquidity was removed through the Azuki Mint.
The launch of the Blur v2 protocol adds a new NFT trading type and associated rewards, as well as lower transaction fees. The official tweet thread about the launch only reinforces the focus on boosting trading rewards.
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