BLUR token unlock could have this impact on the protocol

By AMBCrypto July 17, 2023 In Coinbase, Cryptocurrencies, NFTs
  • BLUR token unlock would bring 47.96 million tokens to the market.
  • BLUR continued to dominate the NFT sector in terms of volume.

Blur[BLUR]’s remarkable progress in the NFT marketplace sector has garnered immense admiration from NFT holders and investors during the last few months. The marketplace’s impressive growth has, in turn, significantly increased interest in the BLUR token, attracting a larger user base.

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However, things may take a turn for the worse for the BLUR token going forward. According to EmberCN’s data, at press time, 47.96 million BLUR tokens were moved to Coinbase Prime after being unlocked this month.

Since 15 June, a total of 239 million BLUR tokens were unlocked. Out of this, 140 million BLUR tokens have been sent from Coinbase Prime to different centralized cryptocurrency exchanges (CEXs) in the past month.

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Source: Santiment

Weighing the pros and cons

The token unlock has both positive and negative implications for BLUR. On the positive side, it brings increased liquidity to the market as 47.96 million BLUR tokens are made available on Coinbase Prime, creating more trading opportunities for investors.

Moreover, being listed on a major exchange like Coinbase Prime expands BLUR’s reach to a larger market, potentially attracting new investors and increasing the token’s visibility.

However, there could be negative consequences. The sudden influx of unlocked tokens may lead to increased price volatility. Sharp fluctuations in BLUR’s value could occur.

Furthermore, the transfer of 140 million BLUR tokens from Coinbase Prime to other exchanges may create selling pressure. This could potentially impact the token’s price negatively. Lastly, large token unlocks can create uncertainty among investors about the token’s future value. It may lead to hesitation in buying or holding BLUR.

BLURed vision

At press time, BLUR was trading at $0.3362 after declining materially over the last few days. Along with the price, the volume of BLUR being traded also fell.

Source: Santiment

Realistic or not, here’s BLUR’s market cap in BTC’s terms

However, the BLUR marketplace remained resilient despite market volatility. According to Dune Analytis’ data, BLUR had the largest marketshare in terms of volume of NFTs being traded on the network. At the time of writing, 69.4% of the market share was captured by BLUR.

Even though BLUR was dominating in terms of volume, it lagged behind OpenSea in terms of trades being made on the protocol.

Source: Dune Analytics

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