NFT lending market crashes 97% as users and loan sizes plummet

The NFT lending market has fallen by 97% from its peak in January 2024, with borrower numbers decreasing by 90% and lender participation dropping by 78% in the following months.

GONDI has now taken the lead, controlling 54.2% of the market. The average loan size has decreased significantly from 22,000 USD to 4,000 USD, reflecting a broader shift in user behavior towards art NFTs.

To revive the sector, experts suggest embracing new use cases beyond speculation, including stable lending models and real-world asset applications, as the market grapples with declining interest.

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