Trading volumes on Ethereum-based NFT marketplaces are the lowest since May 2022, The Block Pro’s Data Dashboard shows.
NFT wash trading volumes on Ethereum marketplaces reached 1.8% on January 9 and 13. That compares with 36.2% of trading volumes on January 1, 2023, and is also the lowest level since 0.35% on May 1. 2022. The percentages refer to the portion of total USD volume associated with wash trading, a type of market manipulation in which individuals trade assets among themselves to artificially inflate the price or create the appearance of liquidity.
Ratio of wash trading volume on Etheruem-based NFT marketplaces since December 31, 2022. Image: The Block Pro Data Dashboard
Put an end to the laundry trade
The NFT platforms that have contributed the most to the wash trade in the past – LooksRare, X2Y2 and Blur – have all made changes that further deter such activity.
“We’re seeing exchanges like LooksRare and X2Y2 phasing out some of their trading rewards programs,” said Rebecca Stevens, Senior Research Analyst at The Block. “Blur has been actively trying to filter out wash traders from their airdrop, which has made wash trading less attractive. That, in addition to declining valuations of several NFT market tokens, has caused overall wash trading to continue to decline.”