In the first quarter of the year, the NFT lending market reached a new milestone, reaching a total volume of $2.13 billion, marking a significant 43.6% increase compared to the previous quarter. The top NFT lending platforms have solidified their positions, with data from CoinGecko revealing this impressive growth.
January saw a groundbreaking $0.90 billion in total monthly NFT lending volume, surpassing the previous peak in June 2023. Among the top performers, Blend stood out by capturing a remarkable 92.9% share of the market with a monthly lending volume of $562.33 million in March alone.
While Blend led the pack, other players like Arcade and NFTfi also experienced growth, albeit with smaller market shares of 2.8% ($16.94 million) and 2.2% ($13.3 million) respectively. Further down the list, X2Y2, BendDAO, and Parallel Finance (formerly ParaX) held smaller market shares of 0.8%, 0.8%, and 0.5% respectively.
To drive more user participation, NFT lending platforms are introducing new incentives to increase trading volumes. For example, Arcade, backed by Pantera Capital, recently launched its “Clash of Clans” airdrop initiative, distributing ARCD tokens to 4,000 wallets, each eligible to claim 750 ARCD tokens. Similarly, X2Y2 and BendDAO have also introduced their own tokens for their respective communities.
In a move to expand its services, Binance has entered the NFT lending market with a new loan service, further diversifying the options available to users in the growing NFT lending space.