Many common NFT collections have posted double-digit proportion losses up to now week as BLUR airdrop farmers offload their stock.
With Blur Season 3 anticipated to finish within the coming weeks, Ethereum-based NFTs are being bought off en-masse.
Season 3 is Blur’s ongoing airdrop farming marketing campaign, the place customers are to be rewarded with [REDACTED], powered by Blast. Merchants assume that this can be within the type of the Blast Layer 2 community’s upcoming token.
Blur customers earn factors by bidding on NFTs and offering mortgage liquidity via its lending infrastructure, Blend. Blur’s incentivized bidding and mortgage provision have been controversial as the liquidity isn’t consultant of true demand and sometimes ends in the identical NFTs being traded from farmer to farmer.
Some market individuals really feel that is adverse for the house as a complete, as true collectors could also be reluctant to enter the market when a considerable portion of provide is within the arms of farmers who can dump their NFTs at any second, miserable costs.
Amidst the rising uncertainty, NFT merchants and collectors are bracing for a possible additional dip in costs after Season 3 concludes. The discount in liquidity, if incentivized bidding is eliminated, is a key concern. Some Blur farmers are already taking preemptive measures by closing their NFT and Blur farm positions.
Lots of the prime Ethereum NFT collections, such as Pudgy Penguins, Bored Ape Yacht Membership, and Milady Maker, are all down by between 6% and 30% during the last week as Blur farmers unwind their positions.
In the meantime, notable NFTs that aren’t traded on Blur, such as CryptoPunks, are up barely during the last week.