Gate.io Market Watch: Blur Outdoes OpenSea Amid Changing NFT Market Dynamics

Competition is fierce among NFT platforms as new contenders, like Blur, are becoming a magnet for traders. In Blur’s case, its recently airdropped native token BLUR peaked at a daily trading volume of $1 billion and nearly touched the top 100 list.

Another similar example is the decentralized NFT marketplace SudoSwap, which airdropped its native token SUDO in January this year. Now, its community has voted to enable transferability following the success of BLUR, meaning the token can now be traded on exchanges.

NFT marketplaces adapt to gain market dominance

Blur rose to contend OpenSea late last year through its “pro-NFT trader” ethos, anticipated airdrop, and zero-fee trading. Its token airdrop model, which incentivizes users to trade NFTs to earn tokens, is credited for the rapid increase in trading volume in the NFT market. Over $630 million worth of NFTs has been traded in the past seven days on Blur. In comparison, OpenSea saw less than a quarter of that, with around $147 million.

However, Blur’s marketplace fees and stance on creator royalties are what’s causing OpenSea to change direction to reel back users. A months-long battle between OpenSea and Blur has resulted in repeated changes to both platforms’ respective royalty policies, with Blur emerging on top. As users shifted to Blur for fewer fees, OpenSea reduced its marketplace fees to zero for a limited time and made royalties optional with a minimum of 0.5%.

Competition over platform and royalty fees has resulted in a lower cost to traders across the board as platforms on all sides make changes to gain market share. Opinions are divided among creators, who want to earn royalties, and traders, who want to pay fewer fees. The battle has also led to both platforms moving to block collections if they do not blocklist rival platforms with different policies, forcing some traders and creators to pick sides.

Leveraging diverse features for traders and creators

Taking an alternative route to attract users is the Gate NFT marketplace and launchpad on Gate.io, which features high-quality collections and offers creators exposure to over 12 million users worldwide. Gate NFT has carved its place in the NFT market with its massive set of features for both traders and creators alike, such as fractional NFTs, collection offers, social functions, a robust notification and inbox system, and more.

Creators on the platform can launch their collections with free minting and customizable royalties. In addition, creators are exposed to millions of users on Gate.io, customized marketing and promotions, and exclusive customer support.

Looking ahead in the NFT space

Data suggests that much of the trading volume in the market is coming from deep-pocketed traders flipping NFTs and even wash trading motivated by BLUR token rewards. In addition, Blur is approaching its next wave of incentivized airdrops, indicating that activity could continue to rise. If marketplace tokens like BLUR see significant gains, the NFT market could accelerate further. Either way, major platforms like OpenSea have been forced to take note and adjust their business model, which has set a new precedent for what traders will expect from NFT marketplaces going forward.