The lending protocol Blend from Blur dominates with an astonishing 82% share in the NFT lending market.
In Brief
A report from DappRadar highlights that Blend, the NFT lending platform by Blur, currently enjoys a dominant 82% position within the NFT lending sphere.
In the past 22 days, Blend has successfully facilitated loans totaling $308 million.
Lending activities account for 46.2% of all trading actions taking place on Blur's platform.
Since its inauguration on May 3, Blend has emerged as the leading player in the NFT lending market with an impressive 82% share, as indicated by the latest reports. new report by DappRadar Blend, created in collaboration with the venture capital firm Paradigm, operates as a peer-to-peer lending protocol.
Paradigm's whitepaper describes Blend as a 'peer-to-peer perpetual lending protocol' that accepts a wide range of collateral, including NFTs. This means that lenders can choose any asset or value form as collateral, provided it meets specific requirements they set.
As of now, Blend accommodates loans secured by various NFTs, including Miladys, Azukis, DeGods, and wrapped CryptoPunks, and even offers lending options for CloneX. announced on May 25 .
According to DappRadar, Blend recorded an impressive loan volume of 169,900 ETH (approximately $308 million) over just 22 days, outperforming other centralized lending platforms by nearly threefold in weekly loan volume. Since its launch, it has captured 82% of the total borrowing volume across all lending protocols.
On its launch day, Blend achieved a remarkable Total Value Locked (TVL) of $5.21 million. Within three short weeks, this figure skyrocketed by 360% to nearly $24 million, which contributed to an increase in Blur's overall TVL from $119 million to $146 million. It's important to note that $19 million of this total has been engaged in wash trading during the last week.
The successful journey of Blend mirrors that of its parent platform, Blur, which surpassed OpenSea in weekly trading volume shortly after its launch in October of the prior year. Dune Analytics data .
Over the past week, Blur's trading volume reached $104.35 million—indicating a 15.93% drop compared to the previous week. DappRadar suggests a shift in focus for the platform from trading towards lending, with 46.20% of activity now revolving around NFT loans and involving an average of 306 unique daily users.
The platform's daily unique user count for Blend is on an upward trajectory. Starting with 218 users on its first day, the number escalated to 358 by May 22. Over the span of 22 days, the total loan volume of Blend has surpassed that of rivals like NFTfi and BendDAO. Notably, NFTfi, which launched in 2020, has facilitated a total loan volume of $427 million, while BendDAO has recorded $315 million in loans since its April 2022 launch.
Following Blend’s success, Binance also announced In its effort to compete in the NFT lending arena, the crypto exchange has launched its Ethereum NFT lending initiative.
Read more:
Disclaimer
In line with the Trust Project guidelines Please be aware that the information shared on this page is not meant to serve as legal, tax, investment, financial advice, or any other advisory role. It's paramount to invest only what you can afford to lose and seek independent financial guidance if you're uncertain. For more information, we recommend reviewing the relevant terms and conditions, as well as the help and support resources provided by the issuer or advertiser. MetaversePost is dedicated to delivering accurate and impartial reporting, although market conditions may shift unexpectedly.
