Since Non-Fungibleย Tokenย (NFT) lending marketplace Blend launched May 1, it has amassed 169,900 Ethereumย (ETH), or about $308 Million in volume.
In the weeks since leading non-fungible cryptoย token (NFT) marketplace Blur released its lending platform Blend, it has taken 82 percent of total lending volume market share.
Reportsย by a report from blockchainย tech data aggregator DappRadar released on Wednesday, in its 1st 22 days, Blend accumulated 169,900 Ethereumย (ETH), or about $308 Million in volumeย ofย trading. During that same time, the volumeย ofย trading across all Non-Fungibleย Tokenย (NFT) lending platforms reached about $375 million.
On the date of its release, the platform experienced 4,200 Ethereumย (ETH), or approximately $7.6 Million, in lending volume โ meaning, Blend has seen a 3,945 percent boostย in its volumeย ofย trading in just under a month.
In the same time period, total Non-Fungibleย Tokenย (NFT) market trading volumes reached $466 Million, reportsย by DappRadar, signaling a shift in attitudes from Non-Fungibleย Tokenย (NFT) ownership to Non-Fungibleย Tokenย (NFT) lending. Inย addition, 46.2 percent of Blurโs total volumeย ofย trading is now from lending.
Sara Gherghelas, a blockchainย tech data analyst at DappRadar, informed CoinDesk that while Blendโs success is promising for driving financialย resources into stagnant Non-Fungibleย Tokenย (NFT) markets, it comes with its own concerns for the marketโs maturity and its impacts on collection prices.
โThe significance of this large volume can be positive, as it signifies liquidity and market validation,โ stated Ghergelas. โ Nonetheless, there are likewise 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.โ
The report likewise pointsย out since Blendโs launch, Blurโs total value locked (TVL) has increased from $119 Million to $146 Million. Nonetheless, it reveals that wash trading remains a concern and that $19 Million of that has been wash traded just in the past week.
โThe significance of this number isย theย factย that it raises concerns about the legitimacy of the volumeย ofย trading on the Blur platform and likewise on the entire Non-Fungibleย Tokenย (NFT) industry,โ stated Ghergelas. โIt is important for platforms and participants in the market toย sustain transparency and avoid engaging in manipulative practices that can mislead market participants, especially if we want a wider adoption of NFTs.โ
Blur rolled out Blend, Blur Lending, on May 1, to court traders who couldnโt afford to buy an expensive blue-chip Non-Fungibleย Tokenย (NFT) upfront. Nonetheless, a handful of collectors raised concerns that new traders may not be aware of changing market trends, and thus face liquidity issues when paying off their loans.
Reportsย by data platform Dune Analytics, Blur has amassed a volumeย ofย trading of over $120 Million in the lastย week, while runner-up marketplace OpenSea is trailing behind at nearly $37 Million. Inย theย meantime, OpenSea leads with nearly 59,000 active users, while Blur comesย after with about 26,000.
Rosie Perper.
