169,900 ETH in 22 Days: Blend Dominates 82% of NFT Lending Market

169,900 ETH in 22 Days: Blend Dominates 82% of NFT Lending Market


NFT lending platform Blend has amassed $308 million in trading volume, taking 82% of the total lending volume market share since its launch in May.

Since Non-Fungible Token (NFT) lending marketplace Blend launched May 1, it has amassed 169,900 Ethereum (ETH), or about $308 Million in volume.

In the weeks since leading non-fungible crypto token (NFT) marketplace Blur released its lending platform Blend, it has taken 82 percent of total lending volume market share.

Reports by a report from blockchain tech data aggregator DappRadar released on Wednesday, in its 1st 22 days, Blend accumulated 169,900 Ethereum (ETH), or about $308 Million in volume of trading. During that same time, the volume of trading across all Non-Fungible Token (NFT) lending platforms reached about $375 million.

On the date of its release, the platform experienced 4,200 Ethereum (ETH), or approximately $7.6 Million, in lending volume – meaning, Blend has seen a 3,945 percent boost in its volume of trading in just under a month.

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In the same time period, total Non-Fungible Token (NFT) market trading volumes reached $466 Million, reports by DappRadar, signaling a shift in attitudes from Non-Fungible Token (NFT) ownership to Non-Fungible Token (NFT) lending. In addition, 46.2 percent of Blur’s total volume of trading is now from lending.

Sara Gherghelas, a blockchain tech data analyst at DappRadar, informed CoinDesk that while Blend’s success is promising for driving financial resources into stagnant Non-Fungible Token (NFT) markets, 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 signifies liquidity and market validation,” stated Ghergelas. “ 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.”

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The report likewise points out since Blend’s launch, Blur’s 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.

“The significance of this number is the fact that it raises concerns about the legitimacy of the volume of trading on the Blur platform and likewise on the entire Non-Fungible Token (NFT) industry,” stated Ghergelas. “It is important for platforms and participants in the market to sustain transparency and avoid engaging in manipulative practices that can mislead market participants, especially if we want a wider adoption of NFTs.”

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Blur rolled out Blend, Blur Lending, on May 1, to court traders who couldn’t afford to buy an expensive blue-chip Non-Fungible Token (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.

Reports by data platform Dune Analytics, Blur has amassed a volume of trading of over $120 Million in the last week, while runner-up marketplace OpenSea is trailing behind at nearly $37 Million. In the meantime, OpenSea leads with nearly 59,000 active users, while Blur comes after with about 26,000.

Rosie Perper.

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