NFT aggregator and peer-to-peer marketplace Blur has become primarily known for facilitating loans, according to recent on-chain data. A report by DappRadar revealed that Blur’s NFT loan volumes have gone from 4,200 ETH (or around $7.6 million) to 169,900 ETH ($308 million) in less than a month. The data also indicated that trading volumes were shrinking as lending activity increased since early May. Over 80% of all NFT-backed loans are now processed via Blur’s lending protocol, Blend. Any listed NFT can be used as collateral for loans through Blend, and lenders can end up owning the NFT if the borrower cannot pay.
DeFiLlama’s data shows that Blur’s total value locked (TVL) stands at over $143 million, a significant rise from $23 million in early January, at the time of writing. Incentivized participation in the platform’s “Season 2” led to TVL figures continuing to rise, reaching the highest level of over $147 million on May 24, when the platform launched its token, BLUR.
Although the incentives for listing NFTs have increased TVL and trading, DappRadar observed “wash trading” cases, with over 1,900 wallet addresses identified as engaging in the practice. While activity shifts to lending, lenders prefer to loan to owners of CryptoPunks, Milady Maker, and Azuki NFTs, indicating a general interest in the most popular NFTs. Borrowers who have locked their Azuki and CryptoPunks NFTs have received a total of 70,031 ETH and 34,960 ETH, respectively.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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