2023-03-01
Blur, a
competitor to OpenSea, is now slowly dominating the on-chain non-fungible
economy, according to blockchain intelligence platform Glassnode.
As the report explains, Ethereum's gas fees are getting more expensive this month, with the average transaction gas price rising to 38 gwei compared to about 10 to 20 gwei in the last nine months, well above gas costs during the FTX collapse in November (36 gwei) and Binance's FUD news the following month (24 gwei) – both of which caused gas prices to rise.
"After closer examination, Glassnode has identified that the primary source of the rising activity is the NFT market, which is a sign of growth."
NFTs are slowing down in growth in 2022 in terms of trading volume and floor prices for popular collections, which, according to various analyses, reveals that the NFT market is full of wash trading.
While OpenSea- The king of NFT marketplaces for long time – had laid out 20% of workers in last June 2022 due to bear market and its surrounding pressures.
Blur, launched in October, has begun to occupy 78% of NFT transfer volumes using a "zero trading fee model with additional royalties."
"However, OpenSea will change their strategy by canceling gas fees for orders to fight back, but they will be unable to compete with Blur's popularity, according to Glassnode, because Blur has attracted a community of professional traders, unlike OpenSea's past target audience of "creators and collectors."
The report also found that ordinary Blur users make 4 to 5 trades per day on the platform, compared to OpenSea, which averages just 2 trades per user.
"With a very high sales frequency, many NFT sellers feel confident using Blur's platform and also attract more buyers." The report states:
According to Glassnode, the growth of new pocket addresses on Ethereum remained at 40% compared to February last year, meaning blur's users appear to be primarily existing Ethereum users. Instead of all new network participants
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