[Blur’s farming plan raises concerns, Ethereum NFT market declines]
The market for NFT collectibles on Ethereum has been declining since Blur farmers spoke out, including Pudgy Penguins and Bored Ape Yacht Club. Competitors such as DeGods are down 32%, Azuki is down 15%, and CryptoPunks is down 13%, which is reminiscent of where it was trading at the end of last year.
Blur is an NFT marketplace involving an airdrop farming program through which participants can earn rewards and potentially tokens tied to the upcoming Blast Layer 2 network. This program is scheduled for June 26, 2024.
Blur users can earn points by bidding on NFTs and providing loan liquidity through the Blend protocol. The incentive program introduced by Blur sparked controversy because liquidity did not represent actual demand, thereby alienating potential collectors.
More than $16 million was recently withdrawn from Blur’s bidding pool, representing one-fifth of the available buy-side liquidity. One major Blur farmer named CBB0FE is the reason for these major withdrawals, having amassed over 3 million points.
This series of changes shows the contradiction between liquidity and actual demand in the NFT market, which may have an impact on the long-term stability of the market.
