Over $30B of NFT trading volume on Ethereum is wash trading, research suggests

12/24 03:31

According to the analysis compiled by pseudonymous researcher hildobby on Dec. 16, wash trading accounted for over half (58%) of the total NFT trade volumes on Ethereum in 2022. The tactic peaked in January, with wash trading accounting for over 80% of the total NFT trading volume that month. To understand how prevalent the practice has become since the NFT markets emerged, when all of the filters were applied over $30 billion of NFT trading volume from all time could be linked to wash trading. This number is staggering, though it only represents about 1.5% of all trades that have taken place on Ethereum. If that seems confusing, don't worry: What it shows is that the majority of trades are legitimate, but happen at a generally lower price than the wash trades, which makes sense when the point of many wash trades is to artificially inflate the price of an NFT collection.
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