- High-end NFT collections may be borrowed from Blend, such CryptoPunks.
- Blend charges zero protocol fees for both lenders and borrowers.
According to a report by Nansen, the peer-to-peer lending and borrowing platform Blend, established this month by the newly minted non-fungible token marketplace behemoth Blur, has already handled approximately 16,000 loans for a total of 123,500 ETH, or $225 million.
The marketplace Blur soon overtook OpenSea in terms of trading volume when it launched in October of last year. And then introduced an aggressive incentive programme that lured many traders to its platform. According to Nansen, Blend’s success is a big reason why NFT lenders and borrowers like using it.
Dominating the Market Share
Considering that Blend is “arguably the go-to NFT platform for crypto-natives and NFT degens.” Nansen’s prediction that it will develop quickly is not surprising. Incentives like their bidding and listing points system for blur (token) airdrops have greatly aided the marketplace’s meteoric rise in popularity.
In a statement, Nansen claimed to have tracked lending and borrowing on behalf of “1,200 unique borrowers and 1,600 lenders.” High-end NFT collections may be borrowed from Blend, such CryptoPunks and Bored Ape Yacht Club.
The fact that Blend charges “zero protocol fees for both borrowers and lenders,” as Nansen puts it, sets it apart from other peer-to-peer lending platforms. According to Brad Kay, an analyst who keeps tabs on Blend lending using his Dune analytics dashboard. The new NFT lender has cornered 85% of the market this month.
This week, Binance released a new tool that enables clients to borrow crypto using non-fungible tokens as collateral, signaling the exchange’s intention to enter the NFT lending industry.
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