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Dear country without banks
Since February 2023, when the $BLUR Season 2 rewards were introduced, Blur has dominated the market share of the NFT marketplace sector.
However, the lowest price and other statistics in the NFT space have also been trending downward since then, with some arguing that the platform’s operations are damaging the ecosystem.
What could it be? Today’s post introduces you to this important debate.
-WMP
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How much did Blur’s $BLUR farming in Season 2 contribute to NFT’s downturn this year? In my opinion it is inconclusive.
Keep in mind that the Season 2 system gives traders the following perks: Bid and List Pointswhich is later converted into a $BLUR reward.
A prominent criticism of this system is that it appears to encourage distress sales of NFTs over and over again, with farmers accepting losses of ETH in their bids, resulting in more potential future $BLURs later on. It appears to be putting downward pressure on the price floor as it can continue to trade in exchange for profits.
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The crux of the question here is rangehow much pressure do you have from Blur, and is that the main source of pressure here?
Of course we that is We are in a bear market for cryptocurrencies and the level of attention and activity has dropped significantly across the board. If interest rates go down, so will prices. When trust is lost, prices go down. Many threw it out of their collections because of its low morale and narrative, for example, Azuki’s recent declining reputation following the $40 million Elementals controversy.
And other influences are also at play, such as how NFT floor prices surged in unison last week. NFTperp suspended v1 system And the NFT shorts dried quickly. Indeed, there are always a number of moving parts that affect the NFT ecosystem.
personally, do If $BLUR farming stops now, I think it will relieve some pressure from the NFT price floor. Conversely, I think Blur advocates make a compelling argument that the $BLUR incentive created significant liquidity and brought new buyers to the market, which may have caused NFT prices to skyrocket. even worse In recent months, if not for the prospect of these rewards.
Again, I don’t think it’s conclusive that Season 2 of $BLUR farming was a success. main driver The impact of this year’s NFT recession. There is no question that $BLUR farming will put pressure on price floors when, for example, large whales like Machi Big Brother release dozens or hundreds of NFTs all at once to rotate farming positions. No, but I doubt that these rewards also helped keep prices down. The decline in this sector has become even more severe in recent months. So I believe there is some kind of countervailing effect here.
Is Blur eating up the market cap of NFT projects to gain and maintain market share? Some would argue so. Is the $BLUR incentive the best for Blur? Absolutely. But is blur the sole cause of NFT bears? No, I don’t think so.
Where do you think you are by contrast can Blur is where most NFT marketplaces are currently accessible. kill the atmosphere Over the past few months, market wars have intensified, resulting in a slight decline in NFT royalties across the board.
Speaking to most of the non-technical creators who have entered the space over the past few years, automating royalty payments in secondary sales is a big draw for many, if not all. bottom. It’s one of those non-skeuomorphic “only possible with NFTs” that has lost its magic now that its power has been penetrated.
In my opinion Blur would help a lot and open sea Going back from this new meta of making royalty payments optional to simply enforcing a rate set by the creator, like how IRL “serviced” establishments cover tipping, where royalties Some are working towards a cultural norm that will again be considered part of the NFT’s full selling price. Full invoice.
Bring back the good vibes, regain loyalty, and bring a second wind to NFT creators. Will doing this stop the NFT bear market overnight and solve all the problems? No, would that make everyone side with Blur?no, but still can Not only is it good for blur, it’s good for space, but it has a rally effect in many ways. and Turn the anti-blur discourse upside down!
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❓ What do you think of Blur’s current impact? Let us know your two gwei in the comments section below.
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📰 Check out our previous weekly NFT recaps: Pause the Purp? Pump the Pixels
William M. Peester is the creator of metaversal — Bankless newsletter focused on the emergence of NFTs in the crypto economy. He is also a senior writer for Bankless’ flagship newsletter.
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