Sharp increase in Non-Fungible Token lending volume

According to a recent industry report, Arcade and NFTfi are the leading NFT lending platforms of 2024. Both Arcade and NFTfi were successful in capturing above 1% of the monthly market share since the previous year. The report states that Arcade recorded a quarterly increase of $39.46 million in Non Fungible Token lending volume in the first quarter of 2024. 

The token launch of Arcade and NFTfi’s will have a huge impact on the respective platform’s Non-Fungible Token lending volumes. Other leading NFT platforms are X2Y2, BendDAO, and Parallel Finance. The biggest NFT lending platforms experienced larger volumes in 2024, and the NFT lending volume in 2024 surpassed the NFT lending volume of 2023.

It is to be kept in mind that NFT loan originations are controlled by the Ethereum NFT collection due to the unique chemistry between Blend and Blur. The impact of well known Bitcoin on the Non Fungible Token marketplace is worth noting. It is an undeniable fact that the overall NFT lending market witnessed substantial growth in 2024. Blend gained traction and eventually became a leading market player as the new lending platform of Blur, the NFT marketplace. They have maintained their lead with a market share ranging from 88.8% to 96.5%.

The non fungible token lending market of 2024 is accompanied by an unprecedented and massive surge. This trend is punctuated by a tremendous 43.6% growth quarter over quarter, and the platforms apart from Arcade and NFTfi, including X2Y2, Parallel Finance, and BendDAO, have small market shares. NFT lending platforms of today launch new incentives to give impetus to trading activities. Arcade, funded by Pantera Capital, began the “Clash of Clans” airdrop program in February.

NFT lending platforms like X2Y2 and BendDAO have introduced token launches for their members. The rapidly transforming NFT sphere will see a shift with the sharp increase in NFT lending volume.

Blend, founded in May 2023, features a peer-to-peer lending model, and borrowers can use their NFT as collateral. Borrowers can repay according to their convenience with the flexibility offered by NFT lending platforms like Blend. The leaders of the NFT lending market solidified their position in the initial months of 2024 and 2024. January was an eye witness to a record-breaking NFT monthly lending volume of $0.90 million.

The impact of the escalating popularity of Bitcoin on the NFT lending market is a topic of interest among crypto enthusiasts. The trend of a huge spike in NFT market volume is led from the front by Blend. NFT(Non-Fungible Token) is an asset that can be tokenized through a blockchain, and the connection between the token and the asset makes it unique. The amazing specialty of NFTs is that they can be traded for cryptocurrency, money, and other NFTs.

Although two Non Fungible Token from the blockchain look identical, they are not at all interchangeable. NFT is a unique cryptographic token on a blockchain network and can never be replicated. Non Fungible Token manifests digital items and real-world items like artwork and real estate.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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