over $30 billion in NFT transactions on Ethereum are wash trades
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Over $30 Billion in NFT Transactions on Ethereum Are Wash Trades

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Azeez Mustapha

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Approximately nine out of every twenty NFT trade volumes have been wash trades since the NFT’s inception, according to Dune Analytics, and more than five out of every 10 NFT trade volumes in 2022.

over $30 billion in NFT transactions on Ethereum are wash tradesWhen a trader or a group of traders processes a buy and sell either alone or by colluding with an exchange, this act or practice is known as “wash trading”. Wash trading is simply an illegal way to manipulate the NFT market. The main goal of wash trading is to deceive investors and control supply and demand.

Hildobby, a pseudonymous researcher, conducted a more detailed study using four approaches to filter suspected trading algorithms, demonstrating that NFT wash trading is a serious issue that needs to be addressed as soon as feasible. He claims that wash trading is responsible for more than 80% of January’s NFTs trading volume.

After removing the questionable trades using the four methods, it was possible to identify wash trading as the source of more than $30 billion in NFT trading volume, which gives an idea of the extremes to which wash trading has affected the NFT markets. It is not surprising that this percentage represents merely 1.5% of all trades made on the Ethereum network; wash trading is just a strategy used by a group of individuals to draw large numbers of investors into the market and drive the price up before dumping it.

over $30 billion in NFT transactions on Ethereum are wash trades“Nearly 50% of the astounding transaction volume figures we frequently hear are the result of system gamers, not real traders,”
Hildobby stated.


Hildoddy added that the intense competition among NFT platforms for market share in trade volume must be related to the sharp increase in wash trading.

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