Glassnode: NFT Activity Resurging with the Emergence of OpenSea Competitor Blur
With its focus on traders, Blur has emerged as a major player in the non-fungible token (NFT) market, now dominating 78% of the industry, according to recent data. The OpenSea competitor’s success can be attributed to its unique features and lower fees, which have attracted a growing number of NFT enthusiasts and investors. This dominance signals a shift in the NFT landscape, with Blur challenging the dominance of established platforms like OpenSea.
On Wednesday, blockchain analytics firm Glassnode released a report examining how Blur, the decentralized marketplace that’s quickly becoming a popular destination for NFT trading, is stimulating growth in the non-fungible token market.
The report highlights a significant surge in Ethereum gas consumption from NFT-related transactions over the past two months, up by 94%. This indicates a growing interest in NFTs, likely due to Blur’s unique features and growing user base.
Blur Emerges as Ethereum Gas Fees Spike
With Ethereum gas fees increasing sharply this month, trading on NFT marketplace Blur has become an attractive alternative for buyers and sellers seeking to avoid high transaction costs. According to a report by Glassnode, the median gas price for Ethereum transactions has risen to 38 gwei, up from 10 to 20 gwei over the previous nine months.
This puts it higher than the cost of gas during FTX’s fallout in November (36 gwei) and Binance’s bank run event the following month (24 gwei), which also led to high demand for block space and increased transaction costs. Against this backdrop, Blur’s decentralized platform, which offers lower fees and unique features, is emerging as a key player in the NFT market.
With NFT trading volumes and floor prices for top collections declining in 2022, and concerns about wash trading casting a shadow over the industry, the market has been in a state of turmoil. Even established players like OpenSea have not been immune to the fallout, with the platform laying off 20% of its staff in June due to economic pressures. However, this has created an opportunity for new players like Blur to emerge as dominant players.
Launched in October with a zero-trading fee model and optional royalty payments, Blur has quickly gained traction in the NFT space, already capturing 78% of NFT transfer volume. This success underscores the importance of innovation and user-centric features in an industry that’s still evolving.
OpenSea Struggles to Keep Up with Blur’s Rapid Ascent in NFT Trading
Although OpenSea has also transitioned to a zero-fee model to counter the competition, it has been unable to match the growth of Blur. The reason, according to Glassnode, is that Blur has gained a following among professional traders, whereas OpenSea has traditionally focused on attracting creators and collectors.
These numbers speak for themselves: typical Blur users make four to five trades per day, compared to OpenSea’s average of just two trades per user. As Blur continues to offer a platform with lower transaction fees and attractive features, it remains to be seen how OpenSea will respond to this new reality in the NFT market.
While Blur’s success in attracting professional traders and capturing a dominant share of NFT transfer volume is evident, the impact on overall NFT adoption appears limited, according to data from Glassnode. While gas metrics suggest an increase in NFT-related transactions, the growth of new addresses on Ethereum is still 40% lower than it was in February of last year, indicating that Blur’s user base mainly consists of existing Ethereum users, rather than new network participants.
This suggests that the NFT market may still have some way to go in terms of attracting a wider audience and increasing mainstream adoption.
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