Once valued at over $1 billion in monthly loan volume, the space now hovers around $50 million, according to new research from DappRadar.
With NFTs losing momentum across the board, lending platforms that allow users to borrow against their digital collectibles are seeing record-low participation. Borrower numbers are down 90%, lenders by 78%, and average loan sizes have dropped over 70%, now sitting around $4,000. Even loan durations have shortened, suggesting borrowers are seeking quick liquidity plays rather than long-term capital.
Analyst Sara Gherghelas believes the sector won’t recover without a major shift. Tokenized real-world assets—like real estate or income-generating instruments—could introduce more reliable collateral and reinvigorate lending. She also points to the need for smarter systems: think undercollateralized loans, credit scoring, and AI-based risk models.
The NFT lending cooldown mirrors the broader NFT market slump, where trading volumes have nosedived 61% year-over-year. With fewer platforms active and user interest fading, the industry is clearly at a crossroads.
Still, Gherghelas isn’t writing it off. She argues that if future platforms build around utility, culture, and innovative mechanics rather than speculation, NFT lending could eventually find its footing again—this time, on sturdier ground.
Source: https://cryptodnes.bg/
