Nonfungible token marketplace Blur announced Monday that it will shut down its website frontend on November 12, though its onchain marketplace will remain operational. The platform's lending protocol Blend will also stop matching new loans, with borrowers required to repay outstanding loans or allow defaults by the shutdown date.
Blur's closure marks a notable exit from a sector that has seen considerable consolidation. The marketplace had risen to become the largest NFT trading platform by volume in 2023, driven in part by its optional creator royalties policy and token rewards that incentivized trading activity.
Some NFT community members welcomed the news. Collectors on X expressed sentiment that Blur's model had been detrimental to the NFT market, with one commenting that the platform's shutdown represented relief for the industry.
Royalty Impact and Market Shift
Blur's optional royalty structure accelerated a broader industry shift toward lower creator fees. Rival marketplace OpenSea subsequently adjusted its own royalty requirements to remain competitive. Analytics from Nansen showed effective creator royalty fees declined to 0.6% by July 2023, down from an average of 2.5% in 2022, with much of that decline attributed to Blur's growth and minimum royalty policy.
Broader Market Decline
The shutdown occurs as NFT trading volumes remain substantially depressed from market peaks. September 2024 saw $167 million in total NFT sales across 2.9 million transactions, compared to the January 2022 peak of $6 billion across 13.7 million transactions.
Blur's exit follows other marketplace closures. Gemini-owned Nifty Gateway and platform Rodeo announced wind-downs in January 2024, Foundation announced its closure in April after a sale agreement fell through, and Binance ended NFT support on its exchange, shifting asset management to Binance Wallet.
