- The value of BLUR has fallen by double digits in the past week.
- Meanwhile, NFT marketplaces have recorded an increase in user activity.
Despite growing demand for NFT marketplace Blur last week, the value of its governance token BLUR fell double digits, making it the cryptocurrency asset with the most losses over the period.
According to data from CoinMarketCap, the value of the token has plummeted 20% in the past seven days. As prices fell, so did daily trading volume. During the same period, BLUR’s trading volume decreased by 99%.
Source: Santiment
The price drop is due to a sharp decline in altcoin demand last week.
The number of daily unique addresses completing transactions involving BLUR fell 89% between November 24 and January 1, according to data from Santiment.
As the number of active addresses decreases, new demand for tokens also decreases. During the same period, the daily number of new addresses created for BLUR transactions decreased by 93%.
The decline in demand for BLUR last week was due to low returns from transactions involving the token.
AMBCrypto found that the P/L ratio for observed BLUR volume at the 7-day moving average was 0.97.
This value indicates that for every BLUR trade that ended in a loss, only 0.97 trades returned a profit.
Likewise, BLUR’s 7-day MVRV ratio was -0.523% at the time of press. An MVRV ratio below 1 shows that the holder will most likely lose money on their investment.
Source: Santiment
Low demand for Alt has caused exchange supply of BLUR to rally. This shows that downward price pressure is increasing as token holders are increasingly sending their BLUR tokens to cryptocurrency exchanges for future sales.
At press time, there were $186 million worth of BLUR tokens held on various exchanges. It has risen 1% over the past two days. Conversely, token supply outside of exchanges decreased during the same period.
How much is 1,10,100 BLUR worth now?
There has been some activity in the marketplace itself.
Data from DappRadar shows an increase in network activity on the Blur NFT marketplace over the past week.
The total number of unique active wallets on the market that have completed at least one transaction is 19,000. This address completed 68,000 transactions, a 24% increase in the number of weekly transactions on the market.
The fiat value of all transactions completed on Blur last week was $145 million, a 25% week-on-week increase.
Source: DappRadar