Blur – With the rise of NFTs in 2021, many collectors have used OpenSea as their primary marketplace, but things have changed.
Since then, there has been more competition, with the emergence of new marketplaces.
Blur, an upstart NFT marketplace that is making remarkable progress in the Web3 arena, is one of the most recent to emerge.
Blur just surpassed OpenSea, and it now hopes to perform even better with a new, aggressive compensation package.
Incentive program
Blur said on Tuesday that it will give out over $300 million in extra tokens to loyal users.
The announcement comes after the platform surpassed the site’s main competition, OpenSea.
Blur will distribute 300 million native BLUR tokens to traders during its “Season 2,” which is already begun.
BLUR is now trading at $0.95 on CoinGecko.
Season 1 culminated in the launch of the BLUR native token last week, with the platform distributing “care packages” of BLUR to traders who switched to Blur from another marketplace.
Following the platform’s October debut, it also listed NFTs.
Tokens will be issued to traders in a more established, gamified scheme in “Season 2,” according to the business.
Customers of Blur will be assigned a “loyalty score” depending on their activity and dedication to the trading platform.
Buyers and sellers who do not utilize other NFT marketplaces will be rewarded with a large 100% loyalty score.
The loyalty score (together with the number of NFTs users on the list) decides how many BLUR tokens they receive during the airdrop.
Almost everything is possible under the new loyalty system.
Small activities can potentially increase the likelihood of a user acquiring more BLUR.
According to the corporation on Tuesday, simply quote-tweeting its Season 2 Twitter announcement might increase customers’ loyalty score.
It remains to be revealed, however, what technological techniques Blur implemented to integrate activity on other platforms such as Twitter in order to synchronize its numbers with its site.
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Marketplace competition
The statement on Tuesday publicizes the latest advancement as NFT platforms have gone all-out in a free-for-all struggle to recruit and keep clients.
OpenSea had long been the main Ethereum NFT marketplace, with a market capitalization of $13.3 billion.
But, it has lately lost ground to Blur due to the upstart’s attractive token-backed rewards model.
Both marketplaces have also provided further incentives to users who blocklist the other.
Overtaking OpenSea
NFT trade volume has more than doubled in the last week, with Ethereum NFT volume more than tripling.
Blur generated almost $460 million in Ethereum NFT transactions within that time period, a substantial 361% increase over the previous quarter.
CryptoSlam reported a 155% week-over-week surge in Ethereum NFT trading volume following the airdrop of Blur’s BLUR governance token.
Traders obtained the incentives by trading in other platforms and on the Blur marketplace before its launch last autumn.
OpenSea tries to stay competitive
Blur eventually surpassed OpenSea as a result of its trading frenzy.
On Friday, the (previously) top marketplace announced a temporary 2.5% marketplace decrease.
To compete with Blur, OpenSea will likewise reduce its creator royalty enforcement activities.
In other words, the marketplace is foregoing the fees that help it earn money as well as the fees that finance the majority of NFT initiatives.
Nevertheless, OpenSea maintains a tiny edge over Blur, supplying approximately 106,000 more unique wallets in the last week compared to 66,000 for Blur.
A new chapter
Although the long-term viability of Blur’s incentive scheme is unknown, it cannot be denied that it has had an immediate influence on competitors, reinforcing present trends.
While Blur boasts larger trading volumes than OpenSea, the majority of the activity appears to be produced by a small group of whale traders flipping NFTs in order to profit from the rewards program.
The popularity of the program is also affected by the value of its native token.
Image source: Mirror.xyz
