Nfts
NFT lending volume hits quarterly high with $2.1 billion in Q1, data shows
The NFT lending market reached a record $2.13 billion in the first quarter, up 43.6% quarter-over-quarter, with five of the six major platforms seeing increased volumes.
THE loan market non-fungible tokens (NFT) saw its executives consolidate their positions, with total NFT lending volume hitting a quarterly high of $2.13 billion in the first quarter, representing 43.6% quarter-over-quarter growth, according to data published by CoinGecko.
Top NFT Lending Markets by Volume | Source: CoinGecko
Data shows that January saw a record $0.90 billion in total monthly NFT lending volume, surpassing the previous high of $0.85 billion in June 2023. Among the major gainers, Blend emerged as the leader , capturing a staggering 92.9% market share. with a monthly loan volume of $562.33 million in March alone.
“Even though Ethereum NFT collections dominate NFT loan originations, the potential impact of the growing popularity of Bitcoin Ordinals on the NFT loan market remains an area of interest.”
CoinGecko
Other players in the NFT lending space, such as Arcade and NFTfi, have also seen growth, although they represent a significantly lower market share, capturing 2.8% ($16.94 million in volume) respectively ) and 2.2% ($13.3 million in volume). Further down the hierarchy, X2Y2, BendDAO, and Parallel Finance (formerly ParaX) hold smaller market shares of 0.8%, 0.8%, and 0.5%, respectively.
To further encourage user engagement, NFT lending platforms are rolling out new incentives to increase transaction volumes. For example, at the end of February, Arcade, backed by Pantera Capital, revealed its “Clash of Clans” airdrop initiative, aimed at distributing ARCD tokens among 4,000 wallets, each of which can claim 750 ARCD tokens. Similarly, other marketplaces like X2Y2 and BendDAO have also launched their own tokens for their community members.