NFT wash trading volumes on Ethereum marketplaces hit lowest level in more than a year

Bitget App

Trade smarter

The Block2024/01/16 22:46

By:The Block

Quick Take Wash trading volumes on Ethereum NFT marketplaces hit a low of 1.8% of total USD volume, according to The Block Pro Data Dashboard.

NFT wash trading volumes on Ethereum marketplaces hit lowest level in more than a year image 0

Wash trading volumes on Ethereum-based NFT marketplaces are the lowest they've been since May 2022, The Block Pro's Data Dashboard shows.

NFT wash trading volumes on Ethereum marketplaces hit 1.8% on Jan. 9 and Jan. 13. That compares to 36.2% of trading volumes on Jan. 1, 2023, and it's also the lowest level since the 0.35% rate seen on May 1, 2022. The percentages refer to the portion of total USD volume associated with wash trading , a type of market manipulation in which individuals trade assets between themselves to artificially drive up price or the appearance of liquidity.

Ratio of wash trading volume on Etheruem-based NFT marketplaces since Dec. 31, 2022. Image: The Block Pro Data Dashboard

Stamping out wash trading

The NFT platforms that have contributed the the most to wash trading in the past — LooksRare, X2Y2 and Blur — have all made changes that dissuade such activity further.

"We've started to see exchanges like LooksRare and X2Y2 begin to phase out some of their trading rewards programs," said The Block's Senior Research Analyst Rebecca Stevens. "Blur was actively trying to filter wash traders from their airdrop, which has made wash trading less attractive. That, in addition to the valuations of several NFT marketplace tokens dropping, has caused overall wash trading to continue to decline."

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!

European Central Bank President Christine Lagarde said bitcoin is not an option as a reserve asset for the Eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.Meanwhile, the Czech National Bank approved a proposal from Governor Aleš Michl to assess diversifying some of its country’s reserves into bitcoin.

The Block•2025/01/30 21:34

'Inevitable collapse': Trump’s crypto push sparks concern at Paul Singer's Elliott Management: FT

The hedge fund said in a new investor letter that the “inevitable collapse” of the crypto bubble “could wreak havoc,” according to the Financial Times.Elliott’s Paul Singer has never been a fan of crypto, telling WSJ in 2023 that cryptocurrencies are “completely lacking in any value.”

The Block•2025/01/30 21:34