NFT recovery or new bottom discovery?

The non-fungible token (NFT) market has experienced significant price fluctuations in recent weeks, with some arguing that the Blur marketplace's incentivization of floor NFT trading has contributed to falling prices. However, it is suggested that Blur has actually added demand for specific collections and helped prevent aggressive price undercutting for liquidity.

The decrease in unique buyers, with May seeing 70,000 compared to 501,000 in January 2022, indicates that legitimate NFT collectors have reduced their trading activity. Without the volume brought in by Blur, sellers may have been engaged in aggressive undercutting to find liquidity.

The impact of wash trading is also highlighted, with over $645 million in wash trades propping up prices in the broader NFT market. Wash trading continues to play a significant role, accounting for over 62% of Ethereum's total sales in the past thirty days. The volume of wash trades in NFTs is more than double the combined legitimate sales on the other top ten blockchains.

As the blockchain collectibles ecosystem enters a price discovery phase, it is expected that the NFT market will need a few years to fully correct from the all-time highs seen in 2022. Blur is seen as a real product that brings innovation to the trading ecosystem and may be instrumental in saving the day during the NFT market's next downturn. While not all traders may take advantage of the farming rewards offered by Blur, they are likely benefiting from the platform's volume without realizing it.

It is worth noting that the views expressed in the statement provided are subjective and reflect a particular perspective on the NFT market and the role of Blur. The NFT market is highly dynamic and subject to ongoing developments and debates.

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