Nfts
Ethereum NFTs Plunge as Blur Season 3 Ends
Many popular NFT collections have seen double-digit percentage losses over the past week as BLUR airdrop farmers unload their inventory.
With Blur Season 3 set to end in the coming weeks, Ethereum-based NFTs are being sold in droves.
Season 3 is Blur’s ongoing airdrop farming campaign, where users are to be rewarded with [REDACTED], powered by Blast. Traders speculate that this will take the form of the upcoming Blast Layer 2 network token.
Blur Season 3
Blur users earn points by bidding on NFTs and providing lending liquidity through its lending infrastructure, Blend. Blur’s incentives and loans have been controversial because the liquidity is not representative of real demand and often results in the same NFTs being exchanged from farmer to farmer.
Some market participants believe this is negative for the space as a whole, as genuine collectors may be reluctant to enter the market when a substantial portion of the supply is in the hands of farmers who can dump their NFT at any time, thereby driving prices down.
Amid the growing uncertainty, NFT traders and collectors are bracing for another potential price drop after Season 3 ends. The reduction in liquidity, if incentive bidding is removed, is a major concern. Some Blur farmers are already taking preventative measures by closing their NFT and Blur farming positions.
Many of the top Ethereum NFT collections, such as Pudgy Penguins, Bored Ape Yacht Club, and Milady Maker, are all down between 6% and 30% over the past week as Blur farmers unwind their positions.
Meanwhile, notable NFTs that are not traded on Blur, such as CryptoPunks, are up slightly over the latest period. week.