As demand for NFT marketplace Blur soars, its native token plunges
- BLUR’s value has dropped by double digits in the last week.
- Meanwhile, the NFT marketplace recorded growth in user activity.
Despite the growth in demand for the NFT marketplace Blur in the last week, the value of its governance token BLUR fell by double digits to rank as the crypto asset with the most losses during that period.
According to data from CoinMarketCap, the token’s value plummeted by 20% in the last seven days. As its price dwindled, daily trading volume decreased as well. During the same period, BLUR’s trading volume fell by 99%.
The price decline was due to the steep fall in demand for the altcoin in the last week.
According to data from Santiment, the daily count of unique addresses that completed transactions involving BLUR fell by 89% between 24th November and 1st January.
As the active address count dropped, new demand for the token also dipped. Within the same period, the daily count of new addresses that were created to trade BLUR fell by 93%.
The drop in BLUR’s demand in the last week was due to the low profits yielded from transactions involving the token.
AMBCrypto found that the ratio of BLUR’s transaction volume in profit to loss observed on a 7-day moving average was 0.97.
This value indicated that for every BLUR transaction that ended in a loss, only 0.97 transactions returned a profit.
Likewise, BLUR’s 7-day MVRV ratio was -0.523% at press time. The MVRV ratio below one shows that holders mostly incur losses on their investments.
Due to the low demand for the alt, BLUR’s supply on exchanges rallied. This showed that token holders increasingly sent their BLUR tokens to crypto exchanges for onward sales, putting further downward pressure on its price.
At press time, $186 million BLUR tokens were held across various exchanges. This jumped by 1% in the past two days. Conversely, within the same period, the token’s supply outside of exchanges fell.
How much are 1,10,100 BLURs worth today
The marketplace itself saw some activity
Data from DappRadar revealed an uptick in network activity on the Blur NFT marketplace in the last week.
The number of unique active wallets that completed at least one transaction on the marketplace totaled 19,000. These addresses completed 68,000 transactions, a 24% rise in the marketplace’s weekly transactions count.
The fiat value of all transactions completed on Blur last week was $145 million, registering a 25% weekly jump.