Ethereum NFT market downtrend: See how
The recent analysis in the Ethereum NFT market has gained significant attention as Blur Season 3, an airdrop farming campaign tied to the BLUR token, approaches its conclusion. Over the past week, many popular NFT collections have undergone notable declines in value, with Blur farmers rushing to offload their inventory. Let us look in detail into insights on such impact of the Ethereum NFT market.
The Ethereum NFT market is experiencing a decline in value as Blur Season 3, a farming campaign associated with the BLUR token, is going to end. Many popular NFT collections on Ethereum have observed a noteworthy drop in value, with on experiencing two-digit percentage losses over the past week. This downfall is attributed to Blur farmers selling off their NFTs.
Blur Season 3, which comprises airdrop farming, is expected to conclude soon. As a result, there is a haste to sell Ethereum-based NFTs, leading to mass sell-offs in the market.
Blur Season 3 rewards users with [REDACTED], probably the Blast Layer 2 network’s upcoming token, for participating in activities such as requesting NFTs and providing loan liquidity through Blend, Blur’s lending infrastructure.
The incentivized bidding and loan provision mechanisms employed by Blur have flashed arguments. Some argue that the liquidity generated is not indicative of genuine demand and results in NFTs being traded among farmers without reaching true collectors.
The prevalence of farmers in the market, who can immediately sell off their NFTs, is seen as a negative factor. It creates indecision and rejects genuine collectors from entering the Ethereum NFT market, fearing further price depreciation.
NFT traders and collectors are preparing for a potential additional reduction in prices following the conclusion of Blur Season 3. The removal of incentivized bidding could decrease liquidity further, intensifying the downward pressure on prices.
Some Blur farmers are already taking steps to ease potential losses by closing their NFT and Blur farm positions ahead of the predicted market downturn.
Even prominent Ethereum NFT market collections like Pudgy Penguins, Bored Ape Yacht Club, and Milady Maker have not been immune to the market downturn, experiencing declines ranging from 6% to 30% over the past week as Blur farmers loosened their positions.
