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Blur (BLUR) price went vertical on Wednesday, the native token of NFT marketplace Blur rising more than 35% in 24 hours to outpace top cryptocurrencies by market cap. At the time of writing, the price of BLUR was $0.228, its highest level since August.
Why is BLUR surging?
While the gains came amid a slight uptick in overall crypto sentiment, another factor is likely to have triggered the NFT-related token’s outperformance. On October 13, Blur announced that investment firm Arca had submitted an improvement proposal that sought to activate the Blur marketplace’s fee switch. Titled “Blur Fee Switch Discussion”, the proposal highlighted the addition of a 1% base trading fee for the marketplace.
Per the update, the platform would use the fees collected “to systematically buy back and burn BLUR daily.”
Sasha Fleyshman, portfolio manager at Arca, noted that the proposal looked to add to the utility of BLUR. The plan is to incentivize BLUR holders.
We are proposing a two-tiered solution to add utility to $BLUR. First, we are proposing a 1% base trading fee for the Blur marketplace. These fees will be used to systematically buy back and burn the $BLUR token. We propose that this process occur daily.
— Sasha Fleyshman (@ArcaChemist) October 12, 2023
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With the platform’s season 2 of BLUR airdrop reward mechanism live up to November 20, the fee switch on Blur will incentivise users and see creators earn higher royalties. The proposal is seen as a boost to the NFT platform’s tokenomics, with users encouraged to hodl rather than sell.
The proposal will see a 7-day discussion period before a governance vote.
Blur price – what next?
Blur has given up some of the gains seen over the past few hours, and could rely on support at the key price level of $0.20 to prevent further losses. This means a retest of the intraday high of $0.255 recorded on crypto exchange Coinbase could be critical to the immediate price outlook. The 4-hour chart has the RSI and MACD indicators suggesting bulls have the upper hand.
The RSI is however extended in the overbought territory. If the resistance holds and BLUR/USD seeks support lower, a breakdown to $0.180 could allow sellers to target $0.160. The negative picture could be strengthened by increased profit booking.
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