Data from Dune Analytics shows that since Blur launched the NFT loan market Blend on May 2, the market has facilitated 49,495 ETH loans and matched a total of 2,934 loans, of which the number of independent borrowers is 630 and the number of independent lenders became 891.
The introduction of Blend has raised concerns about its potential impact on the entire market. The Lending Platform, an advanced peer-to-peer lending platform, enables traders to lease NFTs to increase liquidity and attract new clients. However, several experts are concerned that this new technique could endanger the market and token holders.
The main goal is to remove financial barriers to popular NFT collections, making it easier for new buyers to join the ecosystem. Blend improves the number of traders and transactions in the market by enabling holders to rent out their NFTs to collectors looking for cheaper access to blue-chip NFTs.
According to Blur, Blend aims to attract new buyers to its ecosystem by reducing the financial barriers to accessing popular NFT collections. As a result, it contributes to the overall liquidity of the NFT ecosystem by increasing the number of traders and transactions.
The loan marketplace will be free to use for both borrowers and lenders at launch. But after 180 days, BLUR token holders can vote on whether or not to charge Blend usage fees.
Despite the obvious advantages, Blend may not be the best platform for every inexperienced trader. As collection bottoms or cryptocurrency prices fall, NFT lending services such as Blend allow collectors to acquire tokens without sufficient funds, creating liquidity issues and market instability.
One of the main concerns about Blend is its relationship with Blur, the top NFT platform in terms of trading volume. The already avid user base may choose to lease NFTs rather than buy them outright, hurting both the market and the native BLUR token.
DISCLAIMER: The information on this website is intended as general market commentary and does not constitute investment advice. We recommend that you do your research before investing.
