DappRadar: The Key to Reviving the Physical Asset or NFT Lending Market

ChainCatcher news, according to Cointelegraph, the latest report from the blockchain analysis platform DappRadar shows that the total trading volume of the NFT lending market has plummeted 97% from a peak of $1 billion in January 2024 to $50 million in May. Analyst Sara Gherghelas pointed out that the number of borrowers has decreased by 90% year-on-year, while lenders have 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 (such as real estate or income-generating 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 declined by 61% year-on-year to $1.5 billion, and the shrinking value of collateral further suppressed lending demand.