Blur’s bidding-incentive model encourages buyers to offer more than listed prices for NFT collections
Blur, a popular NFT marketplace, has introduced a unique bidding-incentive model that encourages buyers to offer more than the listed prices for items in collections.
Blur seeks to improve investors’ bids.
The new marketplace has taken the NFT market by storm since its launch in October of the previous year. The growth is mainly due to its success in catering to the needs of professional traders, who represent the fastest-growing segment of the NFT market.
Blur has recently introduced an incentive model to encourage traders to provide market liquidity, rewarding them with tokens. The bids that take the highest “risk” earn the most reward points in each collection.
As of writing, the highest bid for more than ten items in the Doodles NFT collection is 5.07 ETH, which equates to about $7,900, while the ‘buy now’ price is 5.03 ETH. This trend is seen in collections such as Bored Ape Yacht Club, Azuki, and Moonbird NFTs. When a bid is placed on a listed item, the transaction is only completed after the seller approves it. In contrast, the buyer immediately triggers the transaction for’ buy now’ items.
Moonbird’s offers for Blur exceed the listed asking price, and if accepted by the seller, the transaction would go through. However, the buyer would trigger the transaction directly for’ buy now’ items. The additional fees associated with a transaction, such as listing and bidding fees, may mitigate the impact of reverse arbitrage in the current market.
For instance, a sale on Ethereum might incur a $20 transaction fee and a $70 royalty fee paid to the artist. Many traders bidding on NFTs on Blur likely assume that the rewards they will receive will compensate for their expenses.