NFT Marketplace Blur is Shutting Down Its Website — Why Are Collectors Celebrating?
Blur, the non-fungible token marketplace that once surpassed OpenSea by trading volume, announced it will shut down its website next month while keeping its onchain marketplace running. Surprisingly, many NFT collectors have welcomed the news, expressing relief and criticism toward Blur’s strategy involving optional creator royalties and token incentives, which stirred controversy over its impact on the NFT industry.
Shutdown Announcement and Community Reaction
On Monday, after more than a year of silence, Blur announced on X that it will shut down its website frontend on November 12, while keeping its onchain marketplace and NFT lending protocol Blend operational but ceasing new loan originations.
The announcement sparked strong reactions from the NFT community, with collectors like Cryptobscure and starfruit accusing Blur of 'destroying' NFTs and expressing relief over its upcoming closure.
Blur’s Strategy and Market Impact
Blur launched on October 19, 2022, allowing sellers to customize royalty payments and incentivizing traders through token rewards to bid and flip NFTs.
This model accelerated a shift toward optional creator royalties in the NFT ecosystem, influencing competitors such as OpenSea to reduce or eliminate creator fees for new collections.
Prior moves from rivals like Magic Eden introduced optional royalties earlier, and by July 2023, average creator royalty fees dropped from 2.5% in 2022 to 0.6% largely due to Blur’s growth and policies.
Declining NFT Market and Competitor Exits
Blur’s decision emerges amid a prolonged slump in NFT trading volumes, with data showing $167 million in sales over 2.9 million transactions in September 2023, down from $6 billion and 13.7 million transactions at the peak in January 2022.
Several prominent NFT platforms have also announced closures or withdrawals in 2023, including Gemini-owned Nifty Gateway, Rodeo, Foundation, and Binance’s NFT service, which shifted asset management to Binance Wallet.
The specific reasons for Blur’s frontend shutdown were not disclosed.
Why it matters
The closure of Blur’s website marks an important moment for the NFT market because the platform briefly led trading volumes by promoting an innovative yet controversial approach with optional creator royalties and token incentives for trading. This strategy accelerated the decline of creator fees across the industry and generated strong community backlash. The shutdown announcement coincides with a broader market downturn and exits of major players, highlighting ongoing challenges in the NFT sector. For creators and collectors, Blur’s decision symbolizes a shift towards re-evaluating NFT economic models and the value of blockchain-based digital art.
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