• Blur had overtaken industry leader OpenSea in NFT transfer volume and trading volume, but now OpenSea is regaining some lost market share.
• User activity on Blur has declined significantly and it has seen a 99% drop in daily trades since June.
• Daily average trade price for Blur suddenly fell from $3413 to $790 between 5 and 6 July.
OpenSea Regains Market Share
OpenSea maintained its position as the top NFT marketplace after losing some of its market share over the past few months to Blur [BLUR]. According to a Glassnode report published in March, the success of Blur was due to a zero-trading fee model and optional royalty payments, which resulted in an increased number of bids on the platform. However, with the past few months plagued by a general decline in the NFT market, user activity on Blur has decreased significantly.
Decline in Trading Volume
Data from Dune Analytics revealed that daily NFT trading volume on Blur peaked at $51.79 million on 27 June, after which it trended downwards until July 16th when it recorded a trading volume of only $529,309 – representing a 99% decline in daily trades since June’s high. On the other hand, OpenSea’s daily trading volume since Q3 began has only ranged between $2.5 million and $3 million; however, last week 86% of all NFT trades were executed on Open Sea while 15% were executed on Blur.
Decrease in Trade Price
The sudden decrease in user activity led to an abrupt drop in the daily average trade price for Blur from $3413 to $790 between 5 and 6 July. As of press time this stood at only $167 – showing just how significantly user interest has dropped off since June’s peak trading volumes. In comparison, while OpenSea is also affected by this general decline across the entire NFT market, its average trade price remains relatively stable over the same period with minimal fluctuations observed throughout Q3 so far.
With OpenSea back at the top once again as users return back to their preferred marketplace for buying/selling NFTs, it appears that initial interest generated by new entrants such as Blur may not be enough to sustain long-term relevance within this space given current market conditions judging by recent trends observed across both platforms over recent weeks/months..
This article highlights how quickly fortunes can change within this space; while new platforms such as BLUR may initially gain considerable traction upon launch due to innovative features or incentives offered (i.e zero-trading fees), user interest can quickly dissipate if overall market conditions become unfavorable or if another platform offers better terms/features – resulting in significant losses for those who invested early into these projects without taking into account potential externalities outside their control (i.e general declines within this sector).