Controversy and Competition: The NFT Market Rises to New Heights in February
In February, NFT sales volume rose to a new high, reaching levels not seen since the start of the crypto winter last spring.
According to DappRadar, trading volume rose to $2.04 billion, up significantly from $941 million in January.
This spike in trading volume is due to Blur, an emerging marketplace for NFTs that surpassed OpenSea in trading volume this month. Blur financially incentivizes users to stay loyal to their platform and trade as many high-value NFTs as possible.
However, Blur’s surge in activity has sparked a debate about whether trading is legal or illegal. While Cryptoslam has removed $577 million worth of Blur trades from its data, DappRadar has decided to report Blur’s trading volume as legitimate, at least for now.
Beyond quantitative analysis, Blur’s explosive growth and incentive structure reflect the increasing financialization of the NFT ecosystem, which once mirrored the digital art market but is beginning to resemble the volatile world of DeFi.
Despite the controversy, rival OpenSea managed to increase its monthly trading volume by 18% to $587.22 million and continues to have a larger number of unique traders than Blur.
One factor contributing to OpenSea’s continued stability is the excitement generated by Dookey Dash, a web game launched by Yuga Labs, the creators of Bored Ape Yacht Club.
The game required access to Bored Ape or Mutant Ape NFT, which boosted the trading volume of those collections. The month-long Dookey Dash contest winner sold his winning key for $1.63 million on ETH on Monday.