Data reveals NFT lending volume surges to record high of $2.1B in Q1
The NFT lending market has achieved remarkable growth in the first quarter, reaching a record-breaking $2.13 billion, a 43.6% increase compared to the previous quarter. This surge in lending volume solidifies the leading positions of the top platforms in the NFT lending industry.
According to data from CoinGecko, January saw an impressive total monthly NFT lending volume of $0.90 billion, surpassing the previous peak of $0.85 billion in June 2023. Among the top performers, Blend emerged as the undisputed leader, capturing an astonishing 92.9% market share with a monthly lending volume of $562.33 million in March alone.
While Blend takes the lion’s share, other players in the NFT lending arena, like Arcade and NFTfi, have also experienced growth, although their market share is considerably lower. Arcade captured 2.8% of the market with a volume of $16.94 million, while NFTfi held 2.2% with a volume of $13.3 million. Further down the ladder, X2Y2, BendDAO, and Parallel Finance (formerly ParaX) hold smaller market shares of 0.8%, 0.8%, and 0.5%, respectively.
To encourage greater user engagement, NFT lending platforms are introducing new incentives to boost trading volumes. For example, in late February, Arcade, which is backed by Pantera Capital, unveiled its “Clash of Clans” airdrop initiative. The initiative aims to distribute ARCD tokens to 4,000 wallets, with each eligible wallet able to claim 750 ARCD tokens. Similarly, other marketplaces like X2Y2 and BendDAO have also launched their own tokens for the benefit of their community members.
In a move to expand its services, Binance has also entered the NFT lending market by offering a loan service. With this development, the NFT lending market is poised for further growth and innovation in the coming months.
