Latest report by NonFungible.com Highlighting an important milestone in the field of NFT lending. In the first half of 2024, market transaction volume exceeded US$2 billion, a 44% increase from the end of 2023.
What is the purpose of NFT lending?
It’s very easy to get a loan using NFTs. Lending platforms allow users to lock their NFTs and receive loans in return. This means they can obtain cash without having to sell their valuable digital assets.
The leader in NFT lending is Blend, a platform launched in May 2023 by popular NFT marketplace Blur. Just over $2.02 billion. This dominance is due to the close relationship between Blend and Blur, both owned by the same company.
The driving force behind the surge in NFT lending lies with long-term NFT holders. These individuals or entities hold their unique digital assets and use NFT lending to obtain liquidity without giving up their valuable NFTs.
Blend: Leading the NFT lending landscape
Although Blend leads the market, other platforms such as Arcade and NFTfi have a smaller market share, but their loan volume has increased significantly compared with the previous quarter. Arcade and NFTfi hold 2.8% and 2.2% respectively. Smaller platforms such as X2Y2 and BendDAO Each accounts for 0.8% of the market share, while Parallel Finance accounts for 0.5%. The launch of Arcade’s new token and the expected release of NFTfi are being closely watched for their potential impact on the market. As the industry expands, more players are expected to enter, providing NFT holders with more options.
Currently, the Ethereum NFT collection dominates the collateral space in the NFT lending market. However, with the rise of alternative blockchain platforms for NFT custody such as Binance Smart Chain and Flow, the future landscape may diversify.
final thoughts
The rapid growth and diversification of the NFT lending market portends exciting times ahead. As Blend leads the industry and other platforms expand their offerings, NFT holders have more options to leverage their assets. As the market continues to evolve, driven by established players and newcomers, it is expected to bring further innovation and competition in the NFT financial field.
