Blend Seizes 82% of NFT Lending Market Share: DappRadar

In the weeks since starring non-fungible token (NFT) marketplace Blur released its lending level Blend, it has taken 82% of full lending measurement marketplace share.

According to a study from blockchain information aggregator DappRadar released connected Wednesday, successful its archetypal 22 days, Blend accumulated 169,900 ETH, oregon astir $308 cardinal successful trading volume. During that aforesaid time, the trading measurement crossed each NFT lending platforms reached astir $375 million.

On the day of its release, the level experienced 4,200 ETH, oregon astir $7.6 million, successful lending measurement – meaning, Blend has seen a 3,945% summation successful its trading measurement successful conscionable nether a month.

In the aforesaid clip period, full NFT marketplace trading volumes reached $466 million, according to DappRadar, signaling a displacement successful attitudes from NFT ownership to NFT lending. Additionally, 46.2% of Blur’s full trading measurement is present from lending.

Sara Gherghelas, a blockchain information expert astatine DappRadar, told CoinDesk that portion Blend’s occurrence is promising for driving superior into stagnant NFT markets, it comes with its ain concerns for the market’s maturity and its impacts connected postulation prices.

“The value of this ample measurement tin beryllium positive, arsenic it indicates liquidity and marketplace validation,” said Ghergelas. “However, determination are besides imaginable negatives, arsenic precocious volumes connected Blend could summation the terms volatility, impacting marketplace stableness and making it hard for traders to foretell terms movements accurately.”

The study besides notes that since Blend’s launch, Blur’s full worth locked (TVL) has accrued from $119 cardinal to $146 million. However, it says that wash trading remains a interest and that $19 cardinal of that has been lavation traded conscionable successful the past week.

“The value of this fig is that it raises concerns astir the legitimacy of the trading measurement connected the Blur level and besides connected the full NFT industry,” said Ghergelas. “It is important for platforms and participants successful the marketplace to support transparency and debar engaging successful manipulative practices that tin mislead marketplace participants, particularly if we privation a wider adoption of NFTs.”

Blur rolled retired Blend, Blur Lending, connected May 1, to tribunal traders who couldn’t spend to acquisition an costly blue-chip NFT upfront. However, a fistful of collectors raised concerns that caller traders may not beryllium alert of changing marketplace trends, and frankincense look liquidity issues erstwhile paying disconnected their loans.

According to data level Dune Analytics, Blur has amassed a trading measurement of implicit $120 cardinal successful the past week, portion runner-up marketplace OpenSea is trailing down astatine astir $37 million. Meanwhile, OpenSea leads with astir 59,000 progressive users, portion Blur follows with astir 26,000.