{"id":130135,"date":"2025-05-28T03:15:34","date_gmt":"2025-05-28T03:15:34","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=130135"},"modified":"2025-05-28T03:15:34","modified_gmt":"2025-05-28T03:15:34","slug":"real-world-assets-could-revitalize-dying-nft-lending-market-dappradar","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=130135","title":{"rendered":"Real-world assets could revitalize dying NFT lending market: DappRadar"},"content":{"rendered":"

Source: Cointelegraph.com NewsReal-world assets linking up with non-fungible tokens (NFTs) is one of a few key catalysts that could reignite the waning NFT lending sector, which is suffering from a collapse in volumes and user activity, says blockchain analytics platform DappRadar.
\nVolumes in the NFT lending market, which allows NFT holders to take out a loan against their token, have dropped 97% from a peak of around $1 billion in January 2024 to $50 million in May, DappRadar analyst Sara Gherghelas said in a May 27 report.
\nGherghelas said for NFT lending to \u201cmove beyond survival mode,\u201d it needs \u201cnew catalysts\u201d to reignite the sector, such as real-world asset NFTs, like tokenized real estate or yield-bearing assets that could unlock more stable, trusted collateral sources.
\n\u201cSo far, 2025 has not delivered a compelling reason for NFT lending to bounce back,\u201d she said. \u201cWhile the infrastructure is still here and the platforms remain active, activity has slowed across the board.\u201d\u00a0
\nBorrower and leading activity have taken a big hit in the NFT lending sector. Source: DappRadar\u201cFor now, the sector seems to be in a holding pattern, waiting either for market recovery or a new use case to reignite interest.\u201d
\nGherghelas added that other catalysts that could rekindle NFT lending were tools that make it easier for NFT holders to borrow against their tokens, and that protocols should create \u201csmart infrastructure\u201d such as undercollateralized loans, credit scores and artificial intelligence risk matching.
\nThe report adds that since January last year, borrower activity has declined by 90% and those willing to lend have shrunk by 78%.
\nThe average NFT loan size has also taken a hit from a peak of $22,000 in 2022 to $4,000 in May, a 71% year-over-year drop.
\nGherghelas said this shift \u201cshows that either users are borrowing against lower-value assets or simply becoming more conservative with leverage.\u201d
\nNFT lending overall trading volume and market activity have dropped off from the all-time highs of past years. Source: DappRadarThe average loan duration is also lower; after hitting an average of roughly 40 days in 2023, it\u2019s been down to 31 days and has held steady throughout 2024 and into 2025.
\nGherghelas said this could indicate that \u201cloans are being taken more frequently but for shorter periods, perhaps a sign of more tactical liquidity plays.\u201d
\nNFT \ufeffmarket downturn also hurts lending
\nPart of the slowdown in NFT lending is connected to the overall NFT market decline, which has seen volumes drop 61% in the first quarter to $1.5 billion compared to $4.1 billion a year ago.
\n\u201cWith collateral value collapsing, the lending activity naturally followed,\u201d Gherghelas said. \u201cThere are a few exceptions that managed to hold or regain traction, but they\u2019ve been outliers, not enough to lift the sector.\u201d
\nRelated: AI decentralized apps are coming for the Web3 throne: DappRadar
\nThe protocol landscape has also narrowed, and the number of active NFT lending apps is limited, with only eight protocols holding any meaningful share.
\n\u201cThe flip-for-liquidity model that worked during bull markets isn\u2019t built for a quieter, more risk-averse environment. But that doesn\u2019t mean NFT lending is finished; it\u2019s simply shifting focus,\u201d Gherghelas said.
\n\u201cPlatforms are diversifying, use cases are shifting, and collateral preferences are changing. If the next wave builds on utility, culture, and better design, NFT lending might just find its second wind \u2014 one built to last.\u201d
\nMagazine: Bitcoin bears eye $69K, CZ denies WLF \u2018fixer\u2019 rumors: Hodler\u2019s Digest, May 18 \u2013 24Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsReal-world assets linking up with non-fungible tokens (NFTs) is one of a few key catalysts that could reignite the waning NFT lending sector, which is suffering from a… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130135"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=130135"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130135\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130135"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}