Wash Trading volume on the Ethereum (ETH) NFT market has approached an all-time low.
Wash Trading volume in Ethereum-based NFT marketsi to the lowest level in more than 1 year declined. Wash Trading transactions according to on-chain data January 9 and January 13 on dates 1.8% of total dollar volume declined. All-time low for Wash Trading volumes May 1, 2022 at 0.35% rate was recorded.
This decline occurred largely thanks to the measures taken by NFT platforms. Recently Blur, X2Y2 And LooksRare (LOOKS) To prevent wash trading operations deterrent regulations made.
Making a statement on the subject, The Block’s Senior Research Analyst Rebecca StevensHe stated that NFT platforms’ efforts in this regard have begun to yield successful results:
We’re seeing exchanges like LooksRare and X2Y2 begin to phase out some of their trading rewards programs. Blur in particular is actively trying to filter Wash Trading transactions from its airdrops. This made washing operations less attractive. This led to a decline in wash trading volume overall, in addition to the decline in value of several NFT-centric altcoins.
Wash trading involves the same person (themselves) on both sides of a transaction for a particular cryptocurrency. buying and selling transaction to do and this way artificial volume is to create.
Blockchain data company Chainalysis In a report published in February 2022, NFT sellers repeatedly sold their own products through “Wash Trading”. raises prices had revealed.