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Blur’s [BLUR] future turns uncertain as concerns around wash trading surface

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Blur's [BLUR] future turns uncertain as concerns around wash trading surface

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  • Wash trade volume on Blur equated to 34% of the total volume on the marketplace till date
  • Blur’s wash trading tripled last month after it airdropped its native token BLUR

The ghost of wash trading came to haunt the Non-Fungible Token [NFT] market yet again. For the fourth consecutive month in February 2023, the total NFT wash trade volume across different marketplaces increased, as per a report by CoinGecko. The total volume in February jumped 126% to $580 million from the previous month’s volume of $250 million.

How much are 1,10,100 BLURs worth today?

Interestingly, Blur [BLUR], which recently replaced OpenSea as the dominant NFT marketplace in sales volume, accounted for 27% of the total wash trading during February. In comparison, OpenSea accounted for only 5% during the same time period.

The report added that Blur’s wash trading tripled last month after it AirDropped its native token BLUR, which rewards users on trading activity on the platform.

Source: CoinGecko

Blur needs to be clearer!

Wash trading is a form of market manipulation that inflates trade volume and value when investors, individually or in organized groups, simultaneously sell and buy the same assets.

Blur’s loyalty program, like AirDrops, incentivizes trading activity on the platform. As a result, it is possible that some Blur users sold NFTs to themselves while using multiple wallets to buy BLUR and earn points for AirDrops.

Additional data from Dune revealed that the wash trade volume on Blur equated to 34% of the total volume on the marketplace till date.

However, it should be noted that even if the total volume is adjusted for wash trading, Blur will still occupy the lion’s share of the market. While it stood at 74% for unadjusted volume, its share when wash trading transactions were filtered out dropped to 69%.

Source: Dune Analytics

NFT wash trading accounted for 23.4% of the unadjusted trading volume as of February 2023. However, it should be noted that there was a marked improvement from January 2022 when the share of wash trading was around 67%.

Is your portfolio green? Check out the Blur Profit Calculator

BLUR token faces heat

At the time of writing, BLUR exchanged hands at $0.56, per CoinMarketCap, with a market cap of over $232 million. It lost over 55% of its value in the last 30 days.

Due to concerns surrounding wash trading, native token BLUR’s volume plunged 70% over the last week, data from Santiment revealed. The weighted sentiment, too, travelled along the negative path, suggesting that investors were wary of its prospects.

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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