Ethereum-based NFTs have witnessed a substantial decline as the Blur Season 3 nears its conclusion. Key NFT collections like Pudgy Penguins and Bored Ape Yacht Club have experienced significant losses, driven by increased NFT inventory offloading by Blur users. The airdrop farming program, utilizing the Blast Ethereum rollup, rewarded users for bidding and providing liquidity on Blur's lending platform, Blend. However, concerns have arisen regarding the true representation of demand in Blur's market, leading to fears of market manipulation and discouragement for genuine collectors. Investors anticipate a price dip post-Season 3, with some taking precautionary measures by deactivating their accounts.
Ethereum Nonfungible Tokens Experience Decline as Blur Season 3 Concludes
In a significant development within the nonfungible token (NFT) market, a sharp decline in Ethereum-based NFTs has been observed in recent weeks, coinciding with the impending conclusion of Blur Season 3. The downturn has predominantly affected iconic NFT collections, with some experiencing substantial percentage losses.
Blur Season 3, a pivotal airdrop farming program initiated by the Blur platform, is set to expire in the coming weeks. This program incentivized users with rewards, including Blast tokens, the native currency of the Blast Layer 2 network, for engaging in bidding and offering liquidity through Blur's lending platform, Blend.
However, the program's incentivized bidding and loan terms have garnered controversy. Critics contend that the mechanics do not accurately reflect true market demand, often leading to the same NFTs being traded between farmers, known as "wash trading." Market experts express concern that this trend negatively impacts the NFT landscape, deterring genuine collectors from entering the marketplace due to the disproportionate influence of farmers who can manipulate the supply of available NFTs.
In anticipation of a price decline post-Season 3, NFT investors and collectors are adopting a cautious approach. Liquidity concerns have prompted some Blur investors to deactivate their NFT and Blur accounts as a precautionary measure.
Leading Ethereum NFTs such as Pudgy Penguins, Milady Maker, and Bored Ape Yacht Club have exhibited a downward trajectory. Conversely, notable nonfungible tokens that have yet to be traded on Blur, such as CryptoPunks, have maintained an upward trend.
Industry analysts attribute the decline in Ethereum NFTs to multiple factors, including the conclusion of Blur Season 3, uncertainty surrounding the future of the market, and concerns related to liquidity. The impact of Blur's incentivized farming program on the broader NFT ecosystem remains a subject of ongoing debate among market participants.
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