NFT Wash Trading Up 126% MoM, X2Y2 And Blur Lead

Key Points:

• Total NFT wash trading volume has increased for four consecutive months. In February 2023, these transactions increased 126% to $0.58 billion.
• X2Y2 and Blur are the top 2 NFT platforms on the list.
• The uptick follows an uptick in overall NFT trading activity over the past four months, partly due to incentives offered on Blur.

The top 6 NFT platforms, including Blur, OpenSea, Magic Eden, x2y2, CryptoPunks, and LookRare, saw NFT wash trading volumes increase 126% in February, reaching $0.58 billion.

A form of market manipulation, wash trading is when an individual or a company trades against themselves to inflate prices artificially, create the illusion of liquidity, or make money from incentives offered on a given platform. A trader can buy and sell the same asset multiple times to make it appear that there is a higher demand than it is.

In February 2023, the NFT wash trading volume of the top 6 markets reached $0.58 billion. NFT wash trading grew 126.0% from $0.25 billion last month.

Wash trading has become popular in specific NFT markets. X2Y2, Blur, and LookRare contributed the most significant amount to NFT wash volume in February 2023, $0.28 billion (49.7%) and $0.15 billion (27.7%), respectively and 0.08 billion USD (15.1%).

These markets have motivated users to trade more by providing rewards. This could be because user activity is incentivized to increase their trading volume, as these markets offer rewards for trades.

The $X2Y2 trading offers started in May 2022. X2Y2 currently accounts for nearly 40% of monthly NFT wash transactions. In July 2022, the X2Y2 wash transaction reached $0.64 billion.

After introducing the $BLUR airdrop last month, Blur has seen wash trades triple. OpenSea laundered $42.57 million, Magic Eden $0.59 million, and CryptoPunks $0 million.

As updated in the previous post, CryptoSlam discovered at least $577 million of the over $1 billion in Blur-related wash trade revenue since the February 14 airdrop, such as reselling the NFT shortly at a price close to the asset’s original transaction.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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