Data analysis of the status quo of the NFT lending track: Blend won 80% of the market share in the first month of its launch
Original Author: Nancy, PANews
Original Author: Nancy, PANews
Due to low liquidity, the NFT lending agreement used to improve the efficiency of capital utilization has flourished, and the overall scale has continued to expand along with the enrichment of NFT assets and the growth of categories. The rapid evolution of the NFT ecology has also promoted the introduction of new products, and the market has begun to accelerate the competition and elimination mechanism.
What is the current status of NFT lending scale? What are the mainstream lending protocols and new players in the market? Which NFTs are more popular with lending funds? Let us speak with data and find out.
Blend's market share accounts for 80%, and new and old players accelerate their competition
On the whole, with the NFT market recovering, the demand for loans has begun to grow. According to data from Dune Analytics, as of May 29, the cumulative loan amount of mainstream lending agreements exceeded US$1.55 billion, of which NFTFi ranked first with a total loan amount of US$430 million, followed by BendDAO with more than US$280 million, and Paraspace. Ranked third with about 250 million US dollars.
However, judging from the market share of the latest weekly loan volume, as of May 29, Blend ranked first with a market share of 82.9%, Paraspace ranked second with 7.8%, and NFTFi ranked third with 5.2%. At the same time, in terms of the market share of the latest daily unique addresses, Blend occupies 67.1%, followed by Paraspace at 15.5%, and NFTFi at 10.9%.
Judging from the data, players in the NFT lending market have been reshuffled, and the main reasons behind this change are: First, Blend is backed by Blur, the leading NFT trading market, and by not charging borrowers and lenders any fees, continuous Added support for popular NFT series such as Punk, Azuki, BAYC, Milady, and DeGods, and launched ETH loan batch repayment functions to create a competitive advantage, which also enabled it to promote over 157,000 pieces in less than a month ETH and 20,000 loans; Second, in the months before Blend went online, Paraspace’s market share ranked first, but not long ago, Paraspace’s internal “infighting” incident caused a large number of users to flee in panic. Although the internal fighting was finally resolved, But the impact on business is clear.
However, the NFT lending market is still full of variables. On the one hand, the top NFT lending projects are launching related products to improve the experience and motivate users. For example, the founder of ParaSpace not only provides the community with a gas subsidy of 100,000 US dollars, suggesting that rewards will be issued to loyal users, but also upgrade wallet transaction monitoring and certification To reshape user trust; NFTFi recently launched the "Earn Season 1" incentive plan, users can get exclusive loyalty points "Earn Points" after repaying loans, which are not transferable but can be used to repay loans; X2Y2 launched X2Y2 Fi and V3 versions, in which X2Y2 Fi specializes in providing financial services for NFT, all NFT loan activities (including lending and refinancing) will be carried out in X2Y2 Fi, and the core of V3 version is to provide better user experience for both borrowers and lenders, introducing A series of features such as canceling the no-gas loan offer, optimizing gas consumption, automatic refinancing, and configurable long-term loan quotations have been introduced.
On the other hand, the recent NFT lending market is ushering in many new disruptors, including:
Binance NFT Marketplace has launched the blue chip NFT mortgage loan function, which currently supports BAYC, MAYC, Azuki and Doodles.
Astaria, the NFT lending platform co-founded by former Sushi CTO Joseph Delong, has officially launched with instant liquidity, fixed terms and no mandatory liquidation, and is releasing a pre-funded vault. Astaria has raised an $8 million seed round with participation from True Ventures, Arrington Capital, Ethereal Ventures, and Wintermute.
The former Coinbase engineer launched PaprMeme, an NFT lending platform based on Uniswap. This product allows borrowers to use NFT as collateral to issue loans in the form of paprMEME, that is, the token holder is the lender. It currently covers 20 popular NFT series. And it has received $3 million investment from Coinbase Ventures.
In addition, the NFT lending agreement Fungify will also be launched in Q2 this year. This product has received US$6 million in investment from Distributed Global, Flow Ventures, and Joe Eagan, former president of Polychain Capital. It mainly provides instant NFT by using Chainlink's NFT floor price feed price. Sales, NFT Collateralized and Yield Blue Chip NFT Index.
The accelerated competition between new and old players will bring more liquidity to the NFT market.
The three major NFTs received half of the loan amount, and Friendship Bracelets was liquidated with the highest proportion
Faced with a wide variety of NFT assets, which types of projects have received the most loan funds? According to data from Dune Analytics, as of May 29, the top three NFTs received about 60% of the total loan amount, of which BAYC’s cumulative loan amount exceeded 350 million US dollars, accounting for 31.7% of the market share; followed by Wrapped Cryptopunks Obtained more than 180 million US dollars, accounting for 16.8%; and Azuki accounted for 11.5% of the market with more than 120 million US dollars. Judging from the latest week’s loan projects and the number of loans, in addition to the above projects, MAYC, Milady, DeGods, Pudgy Penguins, The Captainz and Otherside are also popular collaterals.
From the perspective of the number of liquidated NFTs, Dune Analytics data shows that as of May 29, the market has accumulated more than 16,000 liquidations. Among them, NFTFi has the largest number of NFT types and users, so the total amount of liquidations is the largest, accounting for 94.4% of the total. %; followed by X2Y2, 429. From the perspective of liquidated NFT projects, Friendship Bracelets accounted for 15.1% of the total, Art Blocks Art Blocks accounted for 11.4%, followed by Otherside, Wrapped Cryptopunks, rektguy, and MAYC.
In addition, Dune Analytics data shows that as of May 29, the average annual interest rate of mainstream NFT lending platforms is about 58%, including Otherside, World Of Women, The Captainz, Sandbox's LANDs, Sewer Pass, Meebits, and Cool Cats. more than average. The average loan amount is $13,103, of which BAYC, Wrapped Cryptopunks, Azuki, MAYC, Moonbirds, etc. exceed the average, and the average loan price of Milady, CloneX, DeGods, Pudgy Penguins, and The Captainz is relatively low.
