The Defense of Blur: Is the Marketplace to Blame for NFT Price Slump?
The founder of Blur, Tieshun Roquerre, responded to accusations that Blur is responsible for the prolonged slump in NFT prices. He pointed out that floor prices have both gone up and down since Blur’s launch, and liquidity injections and removals have played a significant role in price movements. The NFT market as a whole has been in a suppressed state, with even premier collections experiencing a decline.
- Blur’s liquidity injections have contributed to floor price increases.
- Azuki’s floor price crashed after liquidity was removed through the Azuki mint.
- Lior Messika and Brad Kay blamed Blur for distorting the market and causing sell-offs.
- Blur currently dominates trading volumes, accounting for 70% of NFT marketplace volume on Ethereum.
- Pacman argues that criticism of Blur’s success is unfair and that it comes with the territory.
Despite the selloffs in major collections, the wider NFT market’s market capitalization has remained relatively stable over the past year, according to data from The Block Research. While Blur’s role in the market is significant, it may not be the sole cause of the current price slump.
Hot Take: Blur’s Role in the NFT Slump
While Blur’s liquidity injections and dominance in trading volumes have undoubtedly influenced the NFT market, it is important to consider other factors at play. The NFT market as a whole has been experiencing a downturn, and blaming a single marketplace may be oversimplifying the situation. The cost of doing business in the NFT space includes both success and criticism, and it is crucial to analyze the broader market trends to understand the current price slump.
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