- OpenSea’s turnover market share dropped from 44% to just over 14% in 10 days.
- Blur also outperformed OpenSea in terms of total number of deals, capturing 56% of the market share.
OpenSea was hit hard by the Storm Blur (BLUR) that swept through the NFT market ecosystem. According to a tweet, over 13,000 addresses canceled all their orders on OpenSea last week.
A total of 13,600 wallet addresses canceled their OpenSea orders last week due to Blur’s loyalty program, which is nearly 5-6 times the historical average. According to @andrewhong5297 Dune. https://t.co/DWP0jFZ7TD pic.twitter.com/mSZJccffrL
—Wu Blockchain (@WuBlockchain) February 26, 2023
A Dune Analytics researcher opined that this may be due to Blur loyalty program announced last week that over 300 million tokens would be distributed to community members who would prefer Blur to other markets.
Even after making major changes to its market policy, such as eliminating service fees, OpenSea was unable to regain users’ trust.
OpenSea tackles rough waters!
At the time of writing, OpenSea’s share of total trading volume across markets has dropped from 44% before the launch of the BLUR token to just over 14% on Feb. 24, data from Dune Analytics has revealed.
As indicated in the chart below, Blur’s volume has exploded since the launch of its token, increasing more than sevenfold.
Source: Dune Analytics
Well, funnily enough, OpenSea was hit hard but started to show signs of recovery in its daily active users and revenue as of Feb 19th. However, Blur’s loyalty program announcement on Feb. 22 halted its rise again, Token Terminal data showed.
With OpenSea effectively cutting off its main source of revenue by lowering fees, it remains to be seen what other avenues would be explored to increase revenue.
Source: Token Terminal
OpenSea also loses in sales
Surprisingly, Blur also outperformed OpenSea in terms of total number of deals, capturing 56% of the market share and pushing OpenSea to 35%.
This was concerning as OpenSea enjoyed considerable dominance on this front for a long period of time by virtue of being popular with individual investors rather than the professional traders that Blur focused on.
Source: Dune Analytics
How much are 1,10,100 BLURs worth today?
Despite the buzz surrounding Blur’s exponential growth, experts have raised concerns about wash trading. according to a tweet per a Nansen analyst, only 20% of Blur’s trading volume was organic, which was a worrying long-term sign.