According to ChainCatcher, the latest report from blockchain analytics platform DappRadar shows that the total trading volume of the NFT lending market plummeted by 97% from a peak of $1 billion in January 2024 to $50 million in May. Analysts point out that the number of borrowers has decreased by 90% year-on-year, the number of lenders has dropped by 78%, and the average loan amount has sharply fallen from $22,000 in 2022 to $4,000.
The report suggests that the tokenization of physical assets could become a new catalyst for the market. Currently, only 8 protocols maintain a valid market share, with the average loan term shortening from 40 days in 2023 to 31 days. In the first quarter of this year, the total trading volume of the NFT market fell by 61% year-on-year to $1.5 billion, and the decline in collateral value further suppressed lending demand.