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Distorted Markets in NFT Sales on Blur: An Analysis

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According to reports, the analysis shows that Blur\’s bid incentives distort the market, resulting in the NFT offer being higher than the \”immediate purchase\” p…

Distorted Markets in NFT Sales on Blur: An Analysis

According to reports, the analysis shows that Blur’s bid incentives distort the market, resulting in the NFT offer being higher than the “immediate purchase” price, that is, the price offered by the buyer in the NFT market is higher than the asking price of the collection. If you want to buy Doodles NFT in Blur, the maximum bid for more than ten items in this series is 5.07 ETH (about $7900), and the “Buy Now” price is 5.03 ETH, as is the case for other series, including Bored Ape Yacht Club, Azuki and Moonbird NFT. Moonbird’s offer on Blur is higher than the asking price. When bidding on the listed items, the seller must accept the price before the transaction is completed, The buyer will trigger the transaction of “Buy Now” items. （The Block）

Blur offer incentives distort the market, resulting in NFT offer higher than “buy now” price

Analysis based on this information:


The emergence of non-fungible tokens (NFTs) has revolutionized the art market, creating new opportunities for artists, collectors, and investors to engage in the trade of digital assets. As more platforms offer these tokens for sale, the market has seen varying degrees of success and criticism. In the case of Blur, a Chinese NFT platform, concerns have been raised about market distortion caused by bid incentives.

According to a recent analysis, the bidding system on Blur results in buyers offering prices higher than the asking price for NFT collections. For instance, the highest bid for Doodles NFT on Blur, a popular collection, is 5.07 ETH, while the “Buy Now” price is 5.03 ETH. The same trend is observed for other collections on the platform, such as Bored Ape Yacht Club, Azuki, and Moonbird NFT. In fact, the offer for Moonbird NFT is even higher than the asking price.

This phenomenon is due to the incentives provided to buyers through the bidding system on Blur. When bidding for an item, the seller is required to accept the price before the transaction is completed. Meanwhile, buyers who purchase items through the “Buy Now” option trigger the transaction immediately. As a result, buyers are incentivized to offer higher prices than the asking price to secure the item as soon as possible, resulting in a distorted market.

This distortion creates challenges for both buyers and sellers in the NFT market. For buyers, the process for obtaining NFTs becomes more complicated, as they have to factor in the bidding dynamics on each platform. It also increases the costs of acquiring NFTs, leading to exorbitant prices that some buyers may not be willing to pay. For sellers, the bid incentive system limits their potential profit, as they may lose out on earning more by accepting lower bids.

In conclusion, the analysis of Blur’s bid incentives in NFT sales highlights the distorted market dynamics that may be present in emerging markets. Buyers and sellers must carefully consider the bidding process on each platform to ensure that they obtain the best value for their NFTs. As NFTs become more prevalent, market dynamics will continue to evolve, creating new opportunities for collectors and investors.

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