Blur NFT Marketplace Shuts Down Website: Why Collectors Are Cheering

Blur, the nonfungible token marketplace that once overtook OpenSea as the largest NFT trading platform by volume, announced it is shutting down its website on November 12. The company confirmed the closure in its first post on X in over a year, noting that while its frontend will go offline, its onchain marketplace will remain operational. Blur also disclosed that Blend, its peer-to-peer perpetual NFT lending protocol, will stop matching new loans, with borrowers given until November 12 to repay outstanding balances or allow them to default.

The announcement was met with celebration from a segment of NFT collectors who blamed Blur for accelerating a race-to-the-bottom on creator royalties. The marketplace's strategy of optional creator royalties and aggressive token rewards helped it surge to the top of NFT trading volumes in 2023, but critics argue it undermined artist compensation. "Good riddance. You destroyed NFTs. Please shut down and never come back," wrote NFT collector Cryptobscure in a reply. Blockchain analytics platform Nansen reported that effective creator royalty fees fell to 0.6% by July 2023, down from 2.5% the previous year, attributing much of that decline to Blur's minimum royalty policy and OpenSea lowering its own royalty requirements to stay competitive.

The shutdown comes as the broader NFT market remains a fraction of its boom-era highs. According to CryptoSlam, total NFT sales reached $167 million across 2.9 million transactions in September, a steep decline from the January 2022 peak of $6 billion in sales over 13.7 million transactions. Blur did not publicly disclose the reasons behind its decision to shutter its frontend and wind down Blend's new lending activity, though the move signals a broader consolidation phase across NFT infrastructure as trading volumes continue to lag.