NFT Market Bleeding as Wash Trading Takes Over?

The latest floor price data paints a grim picture: Pudgy Penguins down -6.99% Azuki down -6.34% Lil Pudgys down -9.42% BAYC down -4.67% Kaito Genesis down -1.34%

The price of numerous non-fungible tokens has fallen today, with several collections seeing their floor prices drop. Despite the fall in floor price, the daily trading sales volume has risen over 40% to $37 million. This sudden rise in trade volume, along with falling floor prices, suggests that investors are panickily selling their NFTs.

NFT Market Bleeding as Wash Trading Takes Over?

The latest floor price data paints a grim picture:

Pudgy Penguins down -6.99%

Azuki down -6.34%

Lil Pudgys down -9.42%

BAYC down -4.67%

Kaito Genesis down -1.34%

Whales are wash trading NFTs back & forth to farm… https://t.co/wZSyb1bSoX

— Crypto Conqueror (@harry_chinh) February 16, 2025

OpenSea Faces Massive Community Backlash

The recent token farming introduced by OpenSea may be linked to the sudden fall in floor prices, according to non-fungible token traders. Non-fungible token market platform OpenSea launched its highly anticipated OS2 update and native token $SEA over the weekend. However, these products have sparked widespread controversy in the non-fungible token community and caused NFT floor prices to drop.

The trading activity of the top Opensea $SEA airdrop farmers is absolutely crazy.

Let’s take a look at DE777, the top XP farmer of the last 24 hours.

As soon as one of his bids is triggered, he immediately dumps the NFTs on the next farmer, sometimes within seconds of his bid… pic.twitter.com/q9MAT9XZrN

— wale.moca 🐳 (@waleswoosh) February 17, 2025

The updated NFT marketplace “OS2” began allowing users to earn XP tokens by bidding on and listing NFTs earlier this week. This system is designed to distribute $SEA tokens in an upcoming airdrop. However, traders have quickly discovered alternative methods to exploit the XP system, such as high-frequency flipping of NFTs with minimal losses to maximize their XP rewards.

This practice has resulted in an explosion of high-frequency trading, with top XP farmers flipping NFTs in seconds, artificially inflating marketplace volume, and driving up NFT floor prices. The NFT community has criticized OpenSea for prioritizing volume and fees over the long-term health of the NFT ecosystem. In 2023, the Blur NFT market platform made the same mistake and significantly damaged NFT floor prices.

NFT Floor Prices Fall +5% In The Past 24 Hrs

Data compiled by CoinGecko.com, an on-chain crypto market data aggregator and a multi-chain non-fungible token market explorer, indicates that numerous non-fungible token collections have seen their floor prices plummet. Pudgy Penguins, a non-fungible token collection from the digital asset firm Igloo featuring a fixed set of 10,000 cartoon NFTs hosted on the Ethereum blockchain network, is one of the NFT collections that have seen its NFT floor price plunging. In the past 24 hours, Pudgy Penguin NFT floor price has plunged 5.6% from the past day.

Source: CoinGecko.com, NFT floor price in the past 24 hours

Kaito Genesis, a non-fungible token collection from the Kaito AI, a crypto analytics platform that features a fixed set of 1,500 NFTs hosted on the Ethereum blockchain network, is another NFT collection that has seen its NFT floor price plunging today. In the past 24 hours, Kaito Genesis NFT floor price has plunged 5.6% from the past day. It has a floor price of 10.20 ETH.

Doodles, a non-fungible token collection from the digital artist Burnt Toast featuring a limited set of 10,000 cartoon NFTs hosted on the Ethereum blockchain network, is among the non-fungible token collections that have seen their floor price plunging today. In the past 24 hours, the Doodles NFT collection has seen its floor price fall by 7.8%. At the time of publishing, Doodles has a floor price of 3.68 ETH.

Bored Ape Yacht Club, a non-fungible token collection from Yuga Labs featuring a limited set of 10,000 NFTs, and Milady Maker, a non-fungible token collection from Remilia featuring a fixed set of 10,000 NFTs, have also seen their floor price falling today. In the past 24 hours, the Bored Ape Yacht Club NFT floor price has plunged by 6.0%, while the Milady Maker NFT floor price fell by 10.7% from the past day. Meanwhile, the OpenSea team has confirmed that