Press launch
PRESS RELEASE. On February 14. The much-anticipated Blur airdrop went live. According To Dune AnalyticsAs of February 15, more than 40,000 addresses have been registered for the Blur Airdrop, with 8.2% of participants receiving more than 10,000 tokens. Most users received between 1,000 and 10,000 BLUR tokens, with a median of 7,000 tokens given per user. At the time of distribution, the value of BLUR on CoinEx was approximately $0.8, resulting in an average airdrop worth of $5,600.
Exploring the Blue Ocean of NFTs:
Blur is gaining traction following its launch in March of 2022, due to the airdrop announcement. Its aggregation system has been widely recognized by NFT traders, allowing for frequent buying and selling. The #1 NFT marketplace, OpenSea, has seen a decrease in transaction volume, indicating the high level of competition in the NFT market.
Due to the unique characteristics of each NFT, it is hard to determine their value. Just like other collectibles, different NFTs offer various features, allowing collectors to purchase an NFT with a special value. This makes it more difficult to buy and sell NFTs compared to FTs, due to the lack of clear valuation strategies, hindering the circulation of the NFT market and leading to low liquidity.
Blue-chip NFTs can be out of reach for retail traders, as the minimum cost for Bored Ape Yacht Club (BAYC) is 67 ETH, worth more than $100,000. This makes it unaffordable for the average trader, as they can purchase 0.01 Bitcoin on exchanges, which is worth more than $20,000.
The NFT market is finding new ways to address these issues, resulting in the NFTFi class, which includes NFT markets, aggregators, and lenders, lending, leasing derivatives, sharding, and oracles.
NFT Market and Aggregator:
NFT markets are the core of the NFT ecosystem, allowing users to list and buy their NFTs at any time. Most NFT buying and selling platforms offer a variety of sales models, such as fixed price sale, Dutch auctions, and English auctions, as well as private transactions. OpenSea is currently the most popular NFT marketplace, followed by Rarible, LooksRare and X2Y2. OpenSea has also issued its own tokens, which can be found on CoinEx.
In addition to the centralized market, decentralized initiatives are also looking to address the low liquidity of NFTs. For example, Sudoswap launched the DEX AMM mechanism to the NFT market, allowing customers to provide liquidity and benefit from immediate pricing through buying and selling comparison. This article addresses the liquidity issue in the decentralized NFT market. However, this method is more suitable for NFT projects ranked in the middle or lower part of the market, as the AMM mechanism eliminates rarity variations. AMM is not applicable for top-tier NFT projects due to their higher value variations.
It can be difficult for customers to find their desired NFT, as there are so many marketplaces available, leading to an increase in the time spent searching. This has resulted in the emergence of aggregators, which are becoming a major channel for NFTs. For example, Blur can also be used to market its own products. Additionally, merchants have access to OpenSea, LooksRare, and X2Y2, allowing them to quickly view important data from related NFTs on a single platform. For experienced merchants, these marketplaces are much more convenient than OpenSea.
NFT Loans:
NFT loans are now an essential part of NFTFi. Many NFT holders are seeking short-term liquidity without having to sell their asset, driving the demand for NFT loans. The NFT loan market is mainly composed of two types: Peer-to-Peer and Peer-to-Pool.
NFTFi can be described as a typical provider of peer-to-peer lending services. This loan model allows borrowers and lenders to negotiate all terms of the loan, including the amount, duration, interest rate, and repayment method. Peer-to-peer lending options offer lower interest rates and borrowers are not exposed to external oracles. However, peer-to-peer lending can lead to high time costs and borrowers might have to spend a lot of time searching for suitable lenders.
Many NFT lending platforms have adopted the AAVE lending model, using the pool-based lending model to offer NFT loans. This means that customers can deposit their NFTs into the shared pool and receive liquidity in return. The borrower can then withdraw the loaned funds and pay the lender back with interest. In this model, the customer has the advantage of quick liquidity, although the interest rate is usually higher than the peer-to-peer model.
Conclusion:
