NFT marketplaces like OpenSea are facing a steep decline in revenue due to a price war that has resulted in transaction fees dropping to zero.
Blur, a marketplace that offers no transaction fees, has become popular and surpassed OpenSea’s weekly volume in December.
In February, Blur started rewarding users in its cryptocurrency to trade, leading to almost 80% of global NFT trading taking place on Blur. To compete, OpenSea has also eliminated transaction fees temporarily, while other NFT startups like Rarible are holding off on cutting fees. NFT marketplaces are exploring other ways to diversify, such as charging NFT creators to promote their collections.
