- Blur crypto has been one of the best-performing tokens this week.
- Blur provided rewards worth millions of dollars to Season 2 participants.
- The company's co-founder secured investment for his layer 2 platform.
Blur price has embarked on a strong rally recently as demand for the token continues. It skyrocketed to a high of $0.5247, its highest point since June 3rd. According to TradingView, the token has surged by over 216% from its lowest point in October, giving it a market cap of over $543 million.
Why is Blur soaring?
The Non-Fungible Token (NFT) industry thrived a few years ago as demand from investors jumped. At the time, NFT marketplaces like OpenSea were handling millions of dollars of volume every day.
Recently, demand for NFTs has dropped, with floor prices falling to their lowest points in years. OpenSea has laid off staff as its valuation in the private market retreats.
Still, there have been some bright spots in the industry. Bitcoin Ordinals has done well as it has become the most traded NFTs recently. Also, Blur has cruised past OpenSea to become the most popular NFT marketplace.
There are three main reasons why Blur price has jumped. First, the network is in the process of moving to its so-called Season 3. As it does this, it offers rewards to its Season 2 participants. The most active NFT trader in this period walked away with rewards worth over $8.4 million.
According to Dune Analytics, the total claimed tokens were 266,329,597 BLUR. At Thursday’s price, these tokens were worth over $200 million. This means that the network will likely see more activities in the next season.
Second, Blur price jumped as its founder started a new layer 2 network known as Blast after he received a $20 million investment from Paradigm and Standard Crypto. The difference between Blast and other Ethereum layer-2 networks is that it will introduce a native yield model. Its airdrop will happen in January.
Third, as Blue price rose, it led to Fear of Missing Out (FOMO) as traders joined the pump. As a result, futures open interest for the Blur token has surged to a record high. They rose to a high of $142 million, with most of them being in Binance, Bybit, and OKX.
Blur price forecast
The daily chart shows that the Blur token has made a spectacular recovery in the past few days. This pump has seen it jump to its highest point since June 3rd. It has moved above the 50-day and 25-day moving averages. The token has also invalidated the double-top action by flipping the resistance at $0.4712 into a support.
Therefore, the outlook for Blur is bullish, with the next level to watch being at $0.5682, the highest point since May 24th. The stop-loss of this trade will be at $0.450.
