Cumulative nonfungible token (NFT) trading volume trended higher in January, and data from a recent Delphi Digital report showed monthly volumes reaching an eight-month high above $1 billion.
The key factor that influenced NFT trading was the Blur token airdrop on Feb. 14. Since its launch last year in Q3 2022, Blur has rewarded users with “care packages,” which can be redeemed for tokens starting Feb. 14 at 12 pm ET.
Many users have tried to farm these airdrops, increasing the platform’s trading volume. Since the start of 2023, Blur’s trading volume has surpassed that of OpenSea, the market leader in the NFT trading space.
NFT Marketplace market share by 7-day volume. Source: Dune
Airdrops often create excitement in the market of thrilled users who receive free money and FOMO from those who missed out. It’s likely that the next step for the Blur team will be to launch new liquidity mining campaigns, similar to Optimism, to retain its volume and users. Moreover, users will also move on to other opportunities in the space, similar to Blur.
On-chain data shows whales are accumulating NFT tokens
The top NFT trading platforms on Ethereum with a native token are LooksRare (LOOKS) and X2Y2 (X2Y2). The year-to-date increase in the price of their tokens is 100% and 260%, respectively. The tokens have outperformed the market’s average gain, suggesting buyers are paying more attention to these tokens.
Independent on-chain analyst The Data Nerd found that Taureon Capital is accumulating NFT marketplace tokens. Ethereum wallets identified as “smart money” by Nansen have also significantly increased holdings of X2Y2 and LOOKS. It shows a rising trend among sophisticated investors toward NFT marketplace tokens.
The number of “smart money” wallets and X2Y2 balances in them. Source: Nansen
Let’s look at each platform more closely:
X2Y2
X2Y2 ranks third concerning NFT trading volumes on Ethereum. The platform launched its token in February 2022 and has since seen steady usage. It distributes the platform’s…
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