Blur vs OpenSea is an almost newly introduced battle in the NFT space. After the fierce launch of the Blur token last February, the platform’s activity has skyrocketed. And in the last 30 days alone, the platform has witnessed $1.24 billion in trading volume. In comparison, Opensea recorded nearly $383 million. And according to Dune, Blur has outrun Opensea by $35 million to $100 million daily since then.
Given Opensea’s outstanding dominance over all NFT marketplaces in the last 5 years, how can a newcomer like Blur overtake the race so fast?
Blur vs. Opensea: The Differences
Although Opensea provides tools for NFT pro traders whose focus is flipping digital assets for a profit, it mainly appeals to retail buyers. Retail buyers are more interested in buying NFTs for their art. They are also more likely to buy a few individual digital tokens, but not in meaningfully high volumes or frequencies.
Blur, on the other hand, has made a name for itself by exclusively appealing to the pro-trader demographic. Or at least that’s what Pacman (founder of Blur) admitted in an interview with Token Terminal.
This dynamic was discovered by NFT ecosystem observers. Blur has been publishing insanely high numbers of trading volume, right? Well, the observers noted that 50 percent of that volume comes from less than 300 wallets. On February 21, for example, just eight wallets on the platform traded more than 4,000 ETH. This battles volume levels that the entirety of OpenSea saw during its worst-performing days.
Yesterday there were 8 wallets that individually traded 4000 ETH or more on Blur.
Most were net-flat (equal buys and sales) but Mando/OSF cashed out 6000 ETH and Machi ended up net-long 6000 ETH worth of NFTs.
For perspective, at its lows, OS did ~5000 ETH per day. pic.twitter.com/n3IuaUUxE9
— NFTstatistics.eth (@punk9059) February 22, 2023
The Clash of Loyalty Programs
At the time of writing, the $BLUR token has a fully diluted market cap of $1.5 billion. Also, the Blur team is not afraid to throw its financial weight around to lure NFT traders to stick with them. Besides, one of the biggest reasons pro traders are running to Blur is its promise to users of rewards with future airdrops of the token. This would total some $300 million during its next “season” of give-outs.
How to get there? LOYALTY POINTS. If you list your NFTs on Blur, you’re allowed to list them on other marketplaces. But, if you list exclusively on Blur, they will give you a 100% loyalty score. More loyalty — more future rewards.
From another angle, Blur’s loyalty points are the only reason users are rushing to the platform. There is also the factor of collector frustration with OpenSea’s stand on creator’s royalties. The problem? There is no settling down.
As of last October, OpenSea paid out the most royalties to creators among all other platforms by a wide margin. Then, a controversial November announcement from the company sparked what essentially resulted in Web3’s unionization movement.
If @opensea decide to take the 0% road, you can be sure that every artist I know will get together bring their collectors anywhere else, artists are smart and they adapt, thats what they do everyday.
— FVCKRENDER (@fvckrender) November 8, 2022
Beyond the royalties debate, it’s safe to say that almost nobody has been pleased with the platform’s stolen items policy, the marketplace’s reputation for not working well in times of high traffic, and its seeming centralized approach to, well, basically everything.
And so it only made matters worse for OpenSea when Blur swooped in. Consequently, drawing traders looking for a marketplace that could give them what they were looking for without all the hassle. AND rewards them handsomely for making the switch?
Then, the cherry on top was Blur’s token launching straight to the moon. But how does OpenSea respond? By cutting royalties and temporarily disbarring its platform transaction fees for certain collections, furtherly frustrating creatives who helped build the space.
Blur vs OpenSea in Conclusion
As a community, we shouldn’t necessarily be looking at Blur’s grand revolt as a positive or negative phenomenon. Instead, we need to look at the ripple effect of the platform’s actions.
Blur claims OpenSea is a centralized antagonist in the NFT ecosystem. But allowing marketplace dominance to be held among a group of just a few hundred NFT whales isn’t the best decentralized system, either. Is it?