Since its release on May 1, the Blur NFT marketplace’s lending platform Blend has taken a massive 82% of the total lending volume market share. According to a recently released report by blockchain data aggregator DappRadar, in only its first 22 days, Blend has accumulated 169,900 ETH, or about $308 million in trading volume, compared to $375 million across all NFT lending platforms during that same time. On the day of its release, the platform saw 4,200 ETH or around $7.6 million in lending volume. This means that Blend has seen a significant 3,945% increase in trading volume in just under a month – a remarkable achievement!
Total NFT market trading volumes reached $466 million in the same period, indicating a shift in attitudes from NFT ownership to NFT lending. Furthermore, 46.2% of Blur’s total trading volume is now from lending. While the success of Blend is encouraging for driving stagnant capital into NFT markets, the report says there are concerns about the market’s maturity and the potential impacts of Blend’s high volumes on collection prices’ volatility.
Sara Gherghelas, a blockchain data analyst at DappRadar, said that the high volume is positive, indicating liquidity and market validation, but added that high volumes on Blend could increase price volatility, impacting market stability and making it difficult for traders to predict price movements accurately.
The report also notes that since Blend’s launch, Blur’s total value locked (TVL) has increased from $119 million to $146 million. However, the report points out that wash trading remains a concern and that $19 million of that has been wash traded just in the past week. This raises concerns about trading volume legitimacy on the Blur platform and the entire NFT industry. Transparency is crucial, and it’s important for platforms and market participants to avoid manipulative practices that could mislead market participants, especially if we want wider NFT adoption.
Blending has allowed Blur to court traders who couldn’t afford to purchase expensive blue-chip NFTs upfront, and it has so far proved a great success. Some collectors have raised concerns that new traders may not be aware of changing market trends and thus face liquidity problems when paying off their loans.
According to Dune Analytics, the Blur NFT marketplace 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 closely with about 26,000.
In conclusion, Blend’s rapid rise in the NFT world is a promising indicator of liquidity and market validation. However, it’s important to maintain transparency and avoid manipulative practices to avoid misinterpreting the market’s success. Some collectors have raised concerns about a lack of understanding on the part of novice traders of the rapidly changing market trends, but with increasing transparency, this market can prosper.
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According to https://www.coindesk.com/web3/2023/05/25/blend-seizes-82-of-nft-lending-market-share-dappradar/
The material in this article is written on the basis of another article.