Key Points:
- Since its launch, Blend has captured the NFT lending market share of the entire market.
- Its contract is already the third largest holder of “Fat Penguin” Pudgy Penguins NFT.
- The volume on all NFT lending platforms right now is $375 million, so Blend alone has an 82% market share.
Blend’s attraction may be driving the stagnating capital inflow into the NFT segment, which is still the dominant platform in the market at the moment.
According to data disclosed by Alex Svanevik, CEO of blockchain analysis company Nansen, the current Blur lending (Blend) contract is already the third largest holder of “Fat Penguin” Pudgy Penguins NFT. A total of 60 Pudgy Penguins NFTs are held in this contract, second only to “Metadrop: Wrapped Penguins” (82) and “Big Brain Holdings” (68).
On-chain data analysis from DappRadar shows that NFT marketplace Blur’s lending platform Blend has amassed 169,900 ETH, equal to $308 million in loan volume, in the first 22 days after its inception. Blend now has an 82% market share on all NFT lending platforms, with a volume of $375 million.
Blend, as stated by the development team, is a lending solution that enables NFT holders to use their assets as collateral to borrow ETH from others. Blend, in particular, will link borrowers and lenders in a peer-to-peer model.
Blend has announced loan funding for a number of popular NFT projects, including Pudgy Penguins, Clone X, Otherdeeds, Bored Ape Kennel Club, Kanpai Pandas, and Redacted Remilio Babies.
Blur is a fast-growing rival to OpenSea and the world’s largest NFT exchange and aggregator. Even before the new Blend, Blur discovered ways to break away from typical NFT exchange trading techniques and spearheaded a paradigm shift with its order book function, vastly boosting convenience for NFT traders.
Not only that, the total value locked on the platform has reached a new high with over $26.5 million, which is a significant step forward for the fledgling NFT lending protocol.
Although Blend is growing strongly, it still comes with concerns because of the way the volume spike it brings, creating an unstable market and difficult to determine price movements.
Moreover, the issue of wash trading on Blur is still a hot topic. The DappRadar report notes that the above $19 million has been identified as wash trading in the past week alone. The exchange itself also had a grand launch with “huge” airdrops, but attracted most of the platform just for “interactive farming”, causing many people to question the real quality of the exchange.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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