The NFT marketplace landscape witnessed a significant shift on February 14, 2023, when the Blur platform distributed its native token, $BLUR, through a highly anticipated airdrop. Several prominent NFT traders received rewards equivalent to millions of dollars. Since Blur first announced its airdrop program in October 2022, its trading volume has surged, significantly surpassing that of the former NFT marketplace leader, OpenSea. The intense competition between these two platforms over the past half-year has led to major strategic shifts, including OpenSea’s unprecedented decision on February 18, 2023, to reduce platform fees to 0% and introduce flexible creator royalties (with a minimum of 0.5%). This article explores the development histories of OpenSea and Blur, analyzes their current standings, and discusses what the future may hold for NFT marketplaces.
OpenSea: The Universal Marketplace Once Valued at $13 Billion
OpenSea officially launched in February 2018. That same year, it received $120,000 in seed funding from Y Combinator. Interestingly, the initial acceptance into Y Combinator was not for the OpenSea concept but for "Wificoin," a project focused on using cryptocurrency for Wi-Fi sharing. However, with the rise of CryptoKitties and the ERC-721 standard, the team decided to pivot entirely to the NFT market. In July 2021, OpenSea raised $100 million in a funding round led by Andreessen Horowitz, achieving a valuation of $1.5 billion. By January 2022, it completed a $300 million Series C round led by Paradigm and Coatue Management, reaching a remarkable valuation of $13 billion.
Blur: The Dark Horse Built for Professional Traders
Blur emerged as a formidable competitor, specifically designed for NFT traders. In March 2022, it secured $11 million in seed funding led by Paradigm. The product completed its beta testing and launched in October 2022, simultaneously kicking off its airdrop program. As of now, Blur is in its second season of airdrops, with interactions before April 1 carrying double weight. This season is expected to distribute a total of 300 million tokens as incentives.
Key Moments in the Rivalry
November 2022: OpenSea attempted to counter Blur by requiring new NFT collections to blacklist Blur to enforce creator royalties. Most creators sided with OpenSea due to royalty earnings, leading to NFT collections with enforced royalties on OpenSea being unsellable on Blur.
February 1, 2023: Blur ingeniously circumvented OpenSea’s blacklist by utilizing OpenSea’s own Seaport protocol to create a new NFT trading system. Since Seaport was not blacklisted by OpenSea, NFT projects that had blacklisted Blur became tradable through this new system.
February 16, 2023: Blur’s founder, known as Pacman, published an article titled "How to Earn Royalties on Blur". The article explained that due to OpenSea’s policies, creators could not earn royalties on both platforms simultaneously. It outlined four options for creators, strongly recommending that they block OpenSea to receive full royalties, qualify for Season 2 airdrops, and gain exposure on Blur’s platform.
February 18, 2023: OpenSea capitulated by reducing trading fees to 0% and making creator royalties optional, with a minimum of 0.5%. It also opened its Operator Filter to all marketplaces adopting similar policies, effectively ending the blacklist against Blur.
Current Data and Valuations
Market Data
Blur and OpenSea currently rank as the top two NFT marketplaces by trading volume. Data from the past three months (October 2022 to February 2023) reveals interesting trends:
- Trading Volume: After announcing its Season 1 airdrop in October, Blur’s trading volume skyrocketed, surpassing OpenSea by double in December and reaching nearly 2.5 times OpenSea’s volume by February. However, OpenSea’s trading volume did not plummet dramatically, suggesting that Blur’s surge may be driven largely by wash trading incentivized by airdrop rewards.
- User Base: Blur experienced a near doubling of its user base following the October airdrop announcement. However, subsequent growth stagnated. Despite having 2.5 times the trading volume of OpenSea, Blur’s user base is only about 15% of OpenSea’s.
Project Valuations
OpenSea: In January 2022, OpenSea was valued at $13 billion during its Series C round. It is important to note that at that time, OpenSea held a monopolistic position in the market, and overall NFT market trading volume was approximately five times higher than current levels.
Blur: Blur launched its token in February 2023 with a total supply of 3 billion. As of February, the circulating supply was 360 million tokens. With $BLUR priced at around $1.3 on February 19, the circulating market capitalization was approximately $500 million, and the fully diluted valuation (FDV) was about $4 billion.
Community Perspectives on the Competition
- @BTCdayu argued that Blur’s victory lies not in royalties, fees, user interface, or gas efficiency but in liquidity provision. For example, on Blur, a user can instantly sell 500 units of an NFT like AZUKI at a price close to the floor price. OpenSea’s recent compromises, though significant, may be too late, as Blur’s Season 2 airdrop incentives and loyalty program continue to attract depth providers.
- 0xSun highlighted that LooksRare was the first to challenge OpenSea by leveraging the latter’s reluctance to issue a token. While LooksRare gained initial traction, it eventually declined due to a lack of groundbreaking innovation. Blur, however, entered as an aggregator with superior user experience, zero platform fees, and optional creator royalties. Its mysterious airdrop campaign attracted both crypto natives and airdrop hunters, fueling market excitement. Nevertheless, Blur’s liquidity heavily relies on reward expectations, and its longevity remains uncertain.
- wale.swoosh criticized OpenSea’s recent policy changes as misguided, arguing that they caused OpenSea to lose both traders and creators. By abandoning its strong stance on protecting creator royalties, OpenSea undermined its unique value proposition. The suggestion was for OpenSea to either issue a token or pivot to a creator-centric marketplace and form alliances with other platforms.
How to Participate in Blur Season 2 for Airdrop Rewards
Using the Bid Method
- Principle: Bidding on high-volume NFT projects and setting bid prices close to the floor price will yield higher Bid Points.
Users should identify high-volume NFT projects based on their liquidity. The same funds can be used to bid on multiple projects. By adjusting bid prices relative to the floor price and monitoring the market, users can accumulate points efficiently. Since canceling bids incurs no extra cost, this strategy allows for flexibility.
Popular projects can be found in the "Trending" section, or users can target projects with accumulating bid volumes (e.g., Moonbirds Oddities). For instance, with 1 ETH in liquidity, a user could bid 0.8 ETH or 0.9 ETH on multiple projects. If monitoring the market closely, bidding closer to the floor price (e.g., 1 ETH on a project like Rektguy with a 1.26 ETH floor price) can accelerate point accumulation.
- Important Notes: If an NFT is accidentally purchased, it can be listed on both Blur and OpenSea. To earn Listing Loyalty points, ensure the OpenSea listing price is higher than on Blur. Focus on high-volume projects to ensure quick resale potential. Avoid newly launched or suddenly trending projects to minimize the risk of acquiring illiquid assets.
Using the List Method
- Principle: Listing high-volume NFT projects at prices close to the floor price or top trait values will yield higher List Points.
Users should list their NFTs on Blur. If cross-listing on OpenSea, set a higher price there to ensure Blur offers the lowest price and qualifies for Listing Loyalty points.
Scenario-Based Strategies:
- If you own a rare-trait NFT but do not wish to sell it, list it at the top trait’s floor price to earn points without selling.
- If you hold ETH but no NFTs, repeatedly bidding and listing high-volume projects can accumulate points quickly. Note that this involves a minimum 0.5% royalty cost per transaction.
- For NFTs tagged by OpenSea, listing them below the floor price on Blur can yield bonus points. This strategy is suitable for projects with future utility or burn mechanisms (e.g., Dooplicator, Moonbirds Oddities).
👉 Explore advanced strategies for maximizing airdrop rewards
Frequently Asked Questions
What makes Blur different from OpenSea?
Blur is designed specifically for professional traders, offering zero platform fees, optional creator royalties, and advanced features like portfolio analytics and sweep tools. OpenSea, on the other hand, targets a broader audience with a user-friendly interface and has historically emphasized creator royalties.
Can I participate in Blur’s airdrop if I’m new to NFT trading?
Yes, but it requires strategic bidding and listing. Start with small bids on high-volume projects to understand the mechanics and minimize risks.
How does Blur’s loyalty program work?
The loyalty program rewards users who consistently list NFTs on Blur instead of other platforms. Higher loyalty tiers unlock better rewards and points multipliers.
Will OpenSea release its own token?
There is speculation, but OpenSea has not confirmed any plans. Regulatory challenges and investor interests may influence this decision.
Is Blur’s trading volume sustainable?
Current volume is largely driven by airdrop incentives. long-term sustainability depends on Blur’s ability to retain users after the airdrop program concludes.
What risks are involved in chasing airdrops?
Risks include potential NFT value depreciation, high gas fees, and market volatility. Always manage your portfolio prudently and avoid overexposure.
Risk Disclaimer
- Exercise caution in managing ETH and NFT allocations to avoid liquidity shortages.
- High gas fees and mandatory 0.5% royalties on Blur may lead to operational costs.
- Blur’s current hype is largely driven by airdrop incentives; its user base remains significantly smaller than OpenSea’s.
- The duration of Season 2 and the utility of $BLUR tokens have not been fully disclosed.
Investing in cryptocurrencies involves substantial risk, including the potential loss of principal. Prices are highly volatile, and market conditions can change rapidly. Always conduct thorough research and consider your risk tolerance before participating.