A few days ago, many readers asked about Blur, a very hot project at the moment. Originally, I was going to write an article introducing it the next day, but I thought again: Blur was too hot at that time, and the price kept rising. Would writing an article under that situation cause everyone to be irrational? So I pressed it.
It just so happens that the market has corrected in the past two days, and the price of Blur has also dropped a lot. If you write this project again, you don’t have to worry too much about readers following suit.
Anyone who often plays NFT knows that Opensea is currently the largest player in the NFT market. Its transaction volume has almost monopolized the entire NFT market. Since its launch in 2018, it has almost never encountered a real opponent. Even Lookrare and x2y2, which popped up last year with real gold and silver token rewards, have not shaken its position in the slightest.
why?
Because the Liquidity of this market is very poor and the trading group is very limited.
The NFT market is very special, and each token is unique and has different attributes. The difference in attributes potentially causes the difference in price, making it possible that there are very few NFTs with the same price.
Take the hottest avatar-type NFT in this market as an example, almost each variety itself is limited in number (for example, 10,000). In this case, different rare attributes are also subdivided. In this way, there are fewer NFTs with the same rare attributes, which greatly limits the Liquidity of NFTs.
In addition, in the NFT market, the largest transaction volume is almost only around a few blue-chip NFTs, and the prices of a few blue-chip NFTs are very high, and only a few people can afford it. So this limits the trading group and trading volume of NFT. Unlike Uniswap, even if the user only has 1 dollar, they can buy any listed token on it.
With poor Liquidity and limited trading groups, this market has become a niche market. Among these two problems, poor Liquidity is the root cause.
In such a niche market, because Opensea started early, it took the lead. As a result, both the project party and the buyer have gradually formed a habit: the project party will default to Opensea when the project goes online, and the buyer will default to Opensea if they want to buy NFT.
Therefore, it is difficult to shake the position of Opensea without fundamentally solving the Liquidity problem.
Did Looksrare and X2Y2 launched last year solve this problem?
They all adopt the most direct method to attract users, hoping to increase the Liquidity of NFT: provide token rewards to users who trade on it and list NFT, and directly attract users through AirDrop.
This trick was very useful at the time, and it attracted a lot of popularity for these two exchanges in a short period of time. But if you think about it carefully, you can see the problem: players can dish out rewards by listing some meaningless NFTs that no one pays attention to.
This still does not bring real Liquidity in essence.
So after I got the AirDrop, I sold the tokens without hesitation.
And how does Blur solve this problem? It also encourages transactions through token rewards, but it encourages buyers to bid close to the floor price and encourages bids for blue-chip projects.
What does it mean?
Let's take the example of the bored ape. For example, its floor price is 70 ETH. We went to Opensea to see that only 1 of the floor prices is listed for sale, and the next highest price is 2 for 71 ETH and 3 for 72 ETH. , 4 hang 73 ETH.
So in this scenario, in terms of floor price, its Liquidity is only 1. If there are 10 buyers who intend to buy Boring Ape with 70 ETH, only one will be able to do so.
In Blur, under the stimulation of token rewards, buyers who intend to buy Boring Ape simply go up to bid, and all 10 buyers bid 70 ETH. Anyway, if you can buy it, you can buy it, and if you don’t buy it, you can get token rewards, why not do it?
At the same time, Blur also incentivizes sellers who sell at floor prices. In this case, will those sellers with 71, 72, and 73 ETH be tempted? Surely some will. As a result, the floor price trading volume of Boring Ape was stimulated in this way. Bored Ape's Liquidity is also greatly improved.
This works best for traders who want to sell and buy NFTs in bulk. Therefore, Blur has attracted quite a few big players, that is, it has attracted the core Liquidity Provider in this market.
This method of using token rewards to solve Liquidity is far superior to Looksrare and x2y2.
Therefore, Blur has gained great attention from the entire community, and its trading volume has surpassed Opensea for several consecutive days.
I very much hope that the monopoly of the Opensea family can be completely broken. "The world has suffered from Opensea for a long time." Opensea's overbearing and disregard for its users has hurt many people's hearts, especially because it has no plan to give back to the community and users. Over the years it has come to where it is today because of the community and users. But after it has reaped the fruits, the first thing it wants to repay is not the community and users.
But think about it, can Blur really overthrow Opensea? If Blur removes token rewards, can this momentum be maintained?
There is a view in the market that after Blur cancels the rewards, people have formed the habit of trading on Blur, so this momentum can still be maintained.
My opinion is that it is best to wait for time to test it.
Why am I not so sure?
I don't know if it's a habit problem or some other reason, but my trading experience on Blur is very average: the small space and cramped display make me feel uncomfortable when using it.
Let's talk about Blur's token.
I took the AirDrop, but I didn't sell it, because I think this reward mechanism is really ingenious, so I continue to maintain an optimistic imagination about it; Going to catch the heat, and the second is whether it can maintain its momentum after canceling the rewards in the future remains to be verified.
However, judging from the current situation, as long as Blur's token reward mechanism is still implemented, it may not be easy for Opensea to think of countermeasures for a while.
I really like this situation. If this kind of monopolist does not give it a little shock, it will not change its mind.
『Disclaimer: This article does not constitute investment advice. It is only for popular science learning and communication among enthusiasts. Please treat it rationally, establish correct concepts, raise risk awareness, and abide by relevant laws and regulations of the country and region where you are located. 』
