NFT
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In the weeks since the non-fungible token (NFT) marketplace Blur launched the Blend lending platform, the latter generated 82% of the total trading volume in the lending market. Such information was provided by experts from the analytical company DappRadar.
According to the data aggregator report, Blend secured 169.9k ETH in the first 22 days, or around $308M in trading volume. During the same time, the total rate of transactions on all lending platforms reached $375 million. On the debut day after the launch, the platform processed transactions for 4200 ETH, or approximately $7.6 million. The researchers noted that by the end of May 2023, this value soared by 3945 %.
According to DappRadar, the total trading volume in the NFT market was fixed at $466 million over the same time period. This indicated a change in attitudes towards lending to digital art. According to statistics, 46.2% of total transactions on Blur were loans of non-fungible tokens.
DappRadar data analyst Sarah Gergelas told CoinDesk: “While Blend’s success speaks volumes about the potential for new capital to be raised in the NFT markets, it’s too early to speak of a resounding success. The market has not yet demonstrated its maturity. The value of high volume can be positive, but this only indicates high liquidity and market testing.”
The industry specialist also noted that the amount of trades on Blend can increase price volatility. In her opinion, this may have a negative impact on the NFT sector. According to the expert, this state of affairs may affect the stability of the market and make it difficult to accurately predict price movements.
Since the launch of Blend, Blur’s total value recorded (TVL) has increased from $119 million to $146 million. The researchers noted that fictitious trading remained a big problem for the industry. At least $19 million related to similar transactions in the last week alone.
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