Despite a surge in demand for the NFT marketplace Blur, its native token, BLUR, has experienced a significant plunge in value. CoinMarketCap data reveals that BLUR’s value dropped by 20% over the last week, marking it as the crypto asset with the highest losses during that period. Moreover, the token’s daily trading volume also witnessed a sharp decline of 99%.
The decrease in BLUR’s price can be attributed to a notable drop in demand for the altcoin over the past week. Santiment data reports that the number of unique addresses involved in BLUR transactions decreased by 89% from November 24th to January 1st. Additionally, the daily count of new addresses created for trading BLUR fell by 93% within the same period.
The decline in demand for BLUR stems from the lack of profitability in transactions involving the token. AMBCrypto’s analysis discovered that, based on a 7-day moving average, for every BLUR transaction that resulted in a loss, only 0.97 transactions yielded a profit. Furthermore, BLUR’s 7-day MVRV ratio stands at -0.523%, suggesting that token holders primarily incur losses on their investments.
The decreased demand for BLUR has led to a surge in its supply on exchanges. This indicates that token holders have been increasingly sending their BLUR tokens to crypto exchanges for selling, exerting further downward pressure on the token’s price. As of now, $186 million worth of BLUR tokens are held across various exchanges, reflecting a 1% increase in the past two days. Conversely, the token’s supply outside of exchanges witnessed a decline during the same period.
Despite the decline in BLUR’s token value, the Blur marketplace recorded an increase in activity. The number of unique active wallets involved in at least one transaction on the marketplace totaled 19,000, completing a noteworthy 68,000 transactions. This represents a 24% growth in the weekly transaction count on the platform. Additionally, the total value of transactions conducted on Blur reached $145 million, marking a 25% increase compared to the previous week.
In conclusion, while the demand for the NFT marketplace Blur has soared, its native token BLUR has faced a significant decline in value. Decreased profitability and a drop in demand have led to a decrease in BLUR’s token price, causing its daily trading volume to plummet. However, despite this setback, the Blur marketplace has experienced an increase in activity and transaction value.
