Nfts
Ethereum NFT Market Sees Downtrend as Blur Season 3 Ends
Downtrend of the Ethereum NFT market: find out how
Recent analysis of the Ethereum NFT market has attracted considerable attention as Season 3 of Blur, an airdrop farming campaign tied to the BLUR token, nears its conclusion. Over the past week, many popular NFT collections have suffered notable drops in value, with Blur farmers rushing to get rid of their inventory. Let’s take a detailed look at the insights into this impact of the Ethereum NFT market.
The Ethereum NFT market is seeing a drop in value as Blur Season 3, a farming campaign associated with the BLUR token, is set to end. Many popular NFT collections on Ethereum have seen a notable drop in value, with double-digit percentage losses over the past week. This drop is attributed to Blur farmers selling their NFTs.
Blur Season 3, which includes airdrop farming, is expected to end soon. As a result, there is a rush to sell Ethereum-based NFTs, leading to massive sell-offs in the market.
Blur Season 3 rewards users with [REDACTED]likely the next token in the Blast Layer 2 network, to participate in activities such as requesting NFTs and providing lending liquidity through Blend, Blur’s lending infrastructure.
The incentive bidding and loan granting mechanisms employed by Blur have given rise to arguments. Some argue that the liquidity generated is not indicative of true demand and results in NFTs being traded between farmers without reaching actual collectors.
The dominance of farmers in the market, who can immediately sell their NFTs, is seen as a negative factor. This creates indecision and prevents genuine collectors from entering the Ethereum NFT market, fearing further price depreciation.
NFT traders and collectors are bracing for a potential further price reduction following the conclusion of Blur Season 3. Removing incentive auctions could further reduce liquidity, intensifying downward pressure on prices.
Some Blur farmers are already taking steps to mitigate potential losses by closing their NFT and Blur farming positions ahead of the expected market downturn.
Even top Ethereum NFT market collections like Pudgy Penguins, Bored Ape Yacht Club, and Milady Maker haven’t been immune to the market downturn, seeing declines ranging from 6% to 30% over the past week, Blur farmers having softened their positions.