NFT lending has had its strongest month, with $444 million in monthly volume through January.
A new report from NFTGators noted the “significant increase in NFT activity” as Polygon NFT again outperformed Ethereum in volume. The rise in NFT lending is partly responsible for the increased activity. BendDAO had the most significant volume in January at $36 million.
NFT activity increases
The rise of NFT lending is part of a broader NFT resurgence. OpenSea activity increased as 319,641 Ethereum users sold 1,132,681 NFTs, while 224,719 Polygon users traded 1,514,895 NFTs in January.
As a result, the average NFT on Ethereum traded for $1,390, buying an average of 3.54 NFTs. On the other hand, the sale price on Polygon was only $69, with an average of 7 NFTs per user. Thus, Ethereum traders spent an average of $4,920 and Polygon traders invested $483.
The graphs below visualize the data and the increase in Polygon NFT activity.
Monthly volume of NFT loans (ETH). Source: dune/rchen8
The rise of NFT loans
The report revealed that 17,900 ETH were distributed through 4,399 loans. The average loan value was 4 ETH per loan, 29 ETH per borrower, and 61.5 ETH per lender.
Increased activity has also lowered the cost of NFT loans, with lenders paying an average of $90 per loan in interest payments.
Outside of market leader BendDAO, other platforms such as NFTfi, X2Y2 and Arcade added an additional $44.8 million.
Loan volume was below 1,000 ETH per month during the 2021 NFT bull run, previously peaking shortly before the Terra Luna crash in May 2022.
Monthly NFT Loan Volume (Source: Dune)
This post NFT loans reach an all-time high in loan volume, users and amount
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