Leading non-fungible token (NFT) marketplace, Blur, has witnessed remarkable success with its lending platform. Blend, securing an impressive 82% share of the total lending volume market. According to a report by blockchain data aggregator DappRadar, Blend accumulated 169,900 ETH (approximately $308 million) in trading volume within its first 22 days. Meanwhile, the overall trading volume across all NFT lending platforms during that period reached approximately $375 million.
On its release date, Blend recorded 4,200 ETH (around $7.6 million) in lending volume, experiencing a staggering 3,945% increase in trading volume within just under a month. This surge in popularity signals a shift in focus from NFT ownership to NFT lending, as total NFT market trading volumes reached $466 million in the same period.
While Blend’s success is seen as positive for driving capital into stagnant NFT markets, concerns have been raised regarding the market’s maturity and the potential impact on collection prices. Sara Gherghelas, a blockchain data analyst at DappRadar, emphasized the significance of Blend’s large volume, noting its liquidity and market validation. However, high volumes on Blend could lead to increased price volatility, potentially affecting market stability and making price movements harder to predict accurately.
DappRadar’s report also highlights that Blur’s total value locked (TVL) increased from $119 million to $146 million since Blend’s launch. However, concerns regarding wash trading persist, with $19 million being wash traded in the past week alone. This raises doubts about the legitimacy of trading volume on the Blur platform and within the NFT industry as a whole. Gherghelas stressed the importance of transparency and avoiding manipulative practices to ensure market participants are not misled, especially when aiming for wider adoption of NFTs.
Despite the success of Blend, concerns have been voiced by some collectors who worry that new traders may lack awareness of changing market trends, potentially leading to liquidity issues when repaying their loans. Data from Dune Analytics reveals that Blur accumulated a trading volume exceeding $120 million in the past week, surpassing its closest competitor OpenSea, which recorded nearly $37 million. In terms of active users, OpenSea leads with almost 59,000, while Blur follows closely with approximately 26,000 users.
