According to a report from blockchain data aggregator DappRadar released on Wednesday, in its first 22 days, Blend accumulated 169,900 ETH, or about $308 million in trading volume. During that same time, the trading volume across all NFT lending platforms reached about $375 million.
On the date of its release, the platform experienced 4,200 ETH, or roughly $7.6 million, in lending volume – meaning, Blend has seen a 3,945% increase in its trading volume in just under a month.
In the same time period, total NFT market trading volumes reached $466 million, according to DappRadar, signaling a shift in attitudes from NFT ownership to NFT lending. Additionally, 46.2% of Blur’s total trading volume is now from lending.
Sara Gherghelas, a blockchain data analyst at DappRadar, told CoinDesk that while Blend’s success is promising for driving capital into stagnant NFT markets, it comes with its own concerns for the market’s maturity and its impacts on collection prices.
“The significance of this large volume can be positive, as it indicates liquidity and market validation,” said Ghergelas. “However, there are also potential negatives, as high volumes on Blend could increase the price volatility, impacting market stability and making it difficult for traders to predict price movements accurately.”
“The significance of this number is that it raises concerns about the legitimacy of the trading volume on the Blur platform and also on the entire NFT industry,” said Ghergelas. “It is important for platforms and participants in the market to maintain transparency and avoid engaging in manipulative practices that can mislead market participants, especially if we want a wider adoption of NFTs.”
Blur rolled out Blend, Blur Lending, on May 1, to court traders who couldn’t afford to purchase an expensive blue-chip NFT upfront. However, a handful of collectors raised concerns that new traders may not be aware of changing market trends, and thus face liquidity issues when paying off their loans.
According to data platform Dune Analytics, Blur has amassed a trading volume of over $120 million in the past week, while runner-up marketplace OpenSea is trailing behind at nearly $37 million. Meanwhile, OpenSea leads with nearly 59,000 active users, while Blur follows with about 26,000.
See Also: Binance Launching NFT Loan Feature
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.