The native token of the popular non-fungible token (NFT) marketplace Blur, known as BLUR, has experienced significant double-digit growth in the past week, coinciding with an announcement by Binance, the world’s largest cryptocurrency exchange, regarding the token’s listing.
Crypto influencer Lark Davis highlighted the “crazy” surge in BLUR’s value, especially noteworthy as the project recently introduced an additional 300 million tokens into circulation, pushing the circulating supply beyond 1.1 billion.
Crazy how $BLUR doubled in price despite adding 300 million tokens into its circulation just Monday
Bull market vibes I guess
— Lark Davis (@TheCryptoLark) November 24, 2023
BLUR’s Rally and Airdrop On November 20, Blur concluded an airdrop that distributed 300 million reward tokens, valued at approximately $160 million, to traders on its marketplace. These tokens were sourced from Blur’s reward pool for Season 2, with users receiving rewards based on various trading activities.
As of now, over 38,000 addresses have claimed more than 267 million tokens, and additional users are expected to claim rewards throughout the week.
Despite the substantial token release, BLUR has emerged as one of the top performers of the week, experiencing an impressive 83% surge to reach $0.61 at the time of this writing, according to CoinMarketCap data. The token’s 24-hour rally of over 26% is attributed to its recent listing on Binance, where it is now available for trading with pairs like BLUR/BTC, BLUR/USDT, and BLUR/TRY.
Bull Market Dynamics Traditionally, large token releases lead to increased selling pressure, resulting in a decline in the asset’s price. This trend was observed with crypto assets like ApeCoin (APE) and Optimism (OP) in August, where values dropped by 16% and 12%, respectively, following token releases.
In contrast, BLUR has defied expectations and continued its upward trajectory. Lark Davis suggests that the unusual market response could be driven by “bull market vibes” within the crypto space. While this remains speculative, analysts have noted the emergence of patterns indicative of a bull market.
Bitfinex has identified specific behaviors in various investor cohorts, signaling the potential initiation of a bull market. Notably, low sell-side liquidity is observed as significant BTC holders opt to retain their assets, reflecting a strong belief in further price growth. These observations align with the anticipated effects of the upcoming Bitcoin halving event.