- Blur NFT lending offering Blend has facilitated over $35 million in loans in less than a week since its launch on May 1
- Miladay and Azuki NFTs are the most popular collectibles used as collateral
- There are over 1,400 total loans accepted, with the number of lenders almost matching that of borrowers
Blur’s NFT lending offering Blend has offered over $35 million in loans less than a week since its launch on May 1. So far, there are over 1,400 total loans accepted with the number of lenders almost matching that of borrowers at 407 and 488 respectively. Milady and Azuki NFT holders are among the top two borrowers accounting for close to 400 loans.
50% Lower than Second Day
Among the top Blur lenders is NFT whale Machi Big Brother who was also among entities linked to wash trading on the NFT marketplace in a bid to attract more Blur tokens during its airdrop. According to data from Dune analytics, there are 430 active loans and 4,762 ETH in active loans at the time of writing.
Although the numbers look impressive, some metrics are almost 50% lower than on Blend’s second day of operation on May 2. For example, on May 2 there were 846 active loans compared to the current 430 loans.
Also, the number of loan refinances on May 2 was eight compared to the current 411 loan refinances. The APY has also been on a freefall since May 2 plummeting from a high of 150% to below 50% at the time of writing.
You’re Overexposed
Despite its hyped first days of operation, not everyone supported Blur’s NFT lending offering. For example, a collector advised other collectors not to use the service noting that “if you need a loan, you’re overexposed” which goes against the rule of investing only what you’re prepared to lose.
1st rule for #NFTs : only invest money you can afford to lose. If you need a loan, you’re overexposed! So just don’t do it and don’t let blur tell you something else! In this space there are kids playing with money. Giving them a loan and take their poket money is just criminal https://t.co/N3IqSWLTbL
— Taki_Nooby_Booby (@Taki_NoobyBooby) May 1, 2023
With Blur NFT lending addressing a crucial need, it’s yet to be seen whether other leading marketplaces like OpenSea and Magic Eden will offer similar services.
