Blend Takes 82% of NFT Lending Market, Earns $308M in 22 Days: DappRadar Report

In the Brief:

  • Blend dominates NFT lending with 82% market share, accumulating $308 million of ETH in under a month.
  • NFT trading volumes hit $466 million, raising concerns about market stability and collection prices.
  • Blur's total value locked is $146 million, but wash trading remains a concern.
  • Trading volumes for Blur and OpenSea reach $120 million and almost $37 million respectively in the past week.

3 - 5 minute read

Total Lending Volume Market Share

Non-fungible tokens (NFTs) have been gaining momentum in recent years, with some selling for millions of dollars at auction. However, not everyone can afford to purchase these expensive digital assets upfront, which is where NFT lending platforms come in. One such platform, Blend, was recently launched by leading NFT marketplace Blur, and it has already taken 82% of the total lending volume market share.

In its first 22 days, Blend accumulated 169,900 ETH, or about $308 million in trading volume. During that same time, the trading volume across all NFT lending platforms reached about $375 million. On the date of its release, the platform experienced 4,200 ETH, or roughly $7.6 million, in lending volume – meaning, Blend has seen a 3,945% increase in its trading volume in just under a month.

According to blockchain data aggregator DappRadar, total NFT market trading volumes reached $466 million in the same time period, indicating a shift in attitudes from NFT ownership to NFT lending. Additionally, 46.2% of Blur’s total trading volume is now from lending.

Sara Gherghelas, a blockchain data analyst at DappRadar, noted that Blend’s success is promising for driving capital into stagnant NFT markets, but it comes with its own concerns for the market’s maturity and its impacts on collection prices. “The significance of this large volume can be positive, as it indicates liquidity and market validation,” said Ghergelas. “However, there are also potential negatives, as high volumes on Blend could increase the price volatility, impacting market stability and making it difficult for traders to predict price movements accurately.”

Since Blend’s launch, Blur’s total value locked (TVL) has increased from $119 million to $146 million. However, the report notes that wash trading remains a concern and that $19 million of that has been wash traded just in the past week. “The significance of this number is that it raises concerns about the legitimacy of the trading volume on the Blur platform and also on the entire NFT industry,” said Ghergelas. “It is important for platforms and participants in the market to maintain transparency and avoid engaging in manipulative practices that can mislead market participants, especially if we want a wider adoption of NFTs.”

Despite concerns, Blend’s success is significant for the NFT lending market and has already had an impact on Blur’s trading volumes. According to data platform Dune Analytics, Blur has amassed a trading volume of over $120 million in the past week, with runner-up marketplace OpenSea trailing behind at nearly $37 million.

The Bottom Line

Blend’s success in capturing 82% of the total lending volume market share is promising for the NFT lending market, indicating liquidity and market validation. However, high volumes on Blend could increase price volatility, impacting market stability and making it difficult for traders to predict price movements accurately. Additionally, wash trading remains a concern and could impact the legitimacy of the trading volume on the Blur platform and the entire NFT industry. Traders should monitor these developments and maintain transparency to avoid misleading market participants.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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