The NFT market has seen significant levels of wash trading, where traders execute artificial trades to increase trading volume. Data from Blur, OpenSea and Magic Eden highlight this trend. Blur leads in wash trading volume with 18.88%, followed by Magic Eden with 27.98%. OpenSea has the lowest at 0.88%.
Among the collections, Blur and Magic Eden have high wash trading levels. Blur’s total volume is $1.29 billion, of which 18.88% is attributed to wash trading, resulting in organic volume of $1.05 billion. Magic Eden’s total volume is $206.66 million, with 27.98% wash trading, leaving an organic volume of $148.83 million.
OpenSea, the leading marketplace, has the least wash trading volume of $379 million, with only 0.88% wash trading, maintaining a healthy organic trading volume of $376 million.
NFT Wash trading volume (180 days):
The more prominent the NFT, the more volume could come from the laundry business
This is a crypto feature, not a bug
Anyone looking to learn more about NFTs or become a bigger participant should recognize the signs
Here are some:… https://t.co/lqyw1bbRoF pic.twitter.com/3JdhcIVI78
— Andrew Forte (@TheAndrewForte) June 3, 2024
The renowned NFT collections also have varying trade volumes. Bored Ape Yacht Club (BAYC) has the highest actual volume at $249.81 million, of which $24.62 million is attributed to wash trading. Mutant Ape Yacht Club (MAYC) follows with volume of $127.58 million, including $12.08 million from wash trading. Collections like Azuki, Milady and Ethlizards have lower wash trading volumes, indicating different trading patterns within the collections.
Source: Forte’s X account
Understanding wash trading and its patterns is crucial for traders. Common indicators include:
– Stable prices regardless of the high-priced purchase.
– Low social media interaction with high trading activity.
-Multiple transactions involving the same buyer in a short period of time.
-A single address that deals with high-frequency trading of a specific NFT.
Wash trading is common in the NFT market. Investors need to be well aware of this so that they can identify warning signs and market dynamics and make informed investment decisions.
Disclaimer: The information in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses arising from the use of said content, products or services. Readers are advised to exercise caution before taking any action regarding the company.
