Blend grabs 82% of the NFT lending market share
NFT lending marketplace Blend has accumulated 169,900 ETH in trading volume, amounting to 308 million, since its launch on May 1, according to a DappRadar report. The lending segment contributes 46.2% of the total trading volume of Blur.
NFT lending on the rise
Blend marketplace is now the leading NFT lending platform, accumulating 82% of the entire volume market share since its inception on May 1.
Blockchain data aggregator DappRadar’s report on May 25 indicated that the lending marketplace accrued 169,900 ETH in trading volume in its first 22 days of operation. The total trading volume for all lending platforms was $375 million during a similar period.
According to DappRadar, the NFT market trading volume hit $466 million, indicating that holders have shifted focus to lending other than ownership.
Blend lending platform amassed 4.200 ETH, about $7.6 million, on its first day of operation, signaling a 3,945% increase in three weeks. Consequently, lending contributes 46.2% of the entire trading volume in Blur.
Impact of NFT lending
According to Sara Ghergelas, DappRadar blockchain analyst, the blossoming lending through Blend might lead to the awakening of the dormant NFTs but has significant effects on prices.
“Large volumes accumulated are good for validation and liquidity in the market,” exclaimed Ghergelas. On the other hand, she said, “the high volumes seen in Blend might potent negatives to the NFT market by increasing volatility levels which will affect stability and price predictability.”
The report further showed that Blur had increased its total value locked (TVL) from $119 million to $146 million since the launch of Blend. Still, wash trading continues to hinder the market, as the report indicates that $19 million came from wash trading last week. Ghergelas advised marketplaces to improve transparency to deter manipulative practices.
Blur launched Blend, also known as Blur Lending, to attract traders interested in blue-chip NFTs but need more money to buy. Data from Dune Analytics indicate that Blur has accumulated over $120 million of seven-day trading volume, while second-placed OpenSea is managing $37 million. In the meantime, OpenSea has about 59,000 active users, trailed by Blur at 26,000.