NFT Sales Raise to Over $2B in February, Highest Since Terra Collapse
According to data from DappRadar, NFT sales volume surged last month to highs not reached since crypto winter began in May 2022 due to Terra’s implosion. Total trading volume was $2.03 billion in February, up 115% from $940 million posted in January.
However, this surge appears to be fueled entirely by a single source: Blur. The fast-rising marketplace ascended to dominance after surpassing OpenSea in terms of trading volume last month.
Blur recently airdropped tokens to loyal users who refrained from trading on other platforms and those who traded as many valuable NFTs as possible.
Blur’s trading volume rose to $1.14 billion last month. But a significant percentage of that volume was generated by a few whales flipping their NFT holdings back and forth to increase their chances of being airdropped more BLUR tokens.
Is Blur Trading Volume Legit?
Whether or not to consider Blur’s trading volume legitimate is a question that’s currently dominating the NFT space. Last week, a top platform for tracking NFT sales, CryptoSlam, announced that it would remove $570 million in Blur trades from its data, citing ‘market manipulation’.
On the other hand, DappRadar, another leading DeFi and NFT tracking platform, has decided to consider Blur’s trades as legitimate. The firm’s Head of Research, Pedro Herrera, said they would not flag Blur sales as wash trades.
If the controversial activity on Blur’s platform were to be considered wash trading, February’s total trading volume would look almost similar to that recorded in January.
Opensea Continues to Hold Steady
Meanwhile, despite the rising competition from Blur, OpenSea also saw a massive increase in its monthly trading volume last month. The marketplace posted $586.45 million in trades, representing a 21% increase from the previous month. In addition, OpenSea has about 315,000 traders, 220,000 more than those trading on Blur.
OpenSea’s steadiness appears to be driven by the hype around the Dookey Dash game rolled out by Yuga Labs, the creator behind the popular Bored Ape Yacht Club NFT collection. The game requires a Mutant Ape or Bored Ape NFT to play, thus boosting the trading volumes of these collections.
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