Blur is shutting down its website, so why are NFT collectors cheering?
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Blur, a once-leading NFT marketplace that surpassed OpenSea by trading volume, announced it will shut down its website on November 12 but keep its onchain marketplace operational. Its peer-to-peer NFT lending protocol, Blend, will also stop matching new loans with borrowers required to repay or default by the shutdown date. Some NFT collectors expressed relief and criticism toward Blur’s business strategy, which included optional creator royalties and token rewards that encouraged active trading and royalty reductions.
Why it matters
The shutdown highlights ongoing challenges in the NFT market, which has seen a sharp decline in trading volume and sales from its 2022 peak. Blur’s rise influenced a broader shift toward lower creator royalties across NFT marketplaces, impacting how creators are compensated. The decision may indicate further consolidation or exits in the NFT marketplace sector amid reduced market activity.
Key context
Blur launched in October 2022 with features allowing sellers to customize royalty payments and offering token rewards, accelerating a market trend toward optional creator royalties seen also at competitors like OpenSea and Magic Eden. By mid-2023, effective royalty fees had decreased significantly, falling from an average of 2.5% in 2022 to 0.6%, largely attributed to Blur’s influence. NFT trading volumes have dramatically decreased from a January 2022 peak of $6 billion to $167 million in September 2023.
Key numbers and entities
Blur, OpenSea, Magic Eden, Blend (Blur’s lending protocol), CryptoSlam (data source), Nansen (blockchain analytics), Tieshun “Pacman” Roquerre (Blur founder), Gemini-owned Nifty Gateway, Rodeo, Foundation, Binance. September 2023 NFT sales were $167 million over 2.9 million transactions, down from $6 billion over 13.7 million transactions in January 2022.
What remains unclear
Blur has not disclosed specific reasons for shutting down its frontend or ending new lending activity on Blend. The future plans for Blur’s onchain marketplace and how its closure will affect users beyond loan repayments are also not detailed.