The Blockchain Analytics DAPPRADAR platform says the realistic assets that have a non -violated symbol (NFTS) is one of some of the main stimuli that can govern the annoying NFT lending sector, which suffers from a collapse in the sizes and size of the user.
The sizes of the NFT lending market, which allows NFT holders to obtain a loan against the distinctive symbol, decreased by 97 % of the peak of about one billion dollars in Jan He said In the May 27 report.
Gherghelas said that NFT lending “to bypass the survival mode” said it needs “new incentives” to clarify the sector, such as the real assets NFTS, such as the distinctive real estate or assets that carry the return that can launch more stable reliable side sources.
“Until now, in 2025, he has not spared a convincing reason for NFT lending for apostasy,” she said. “While the infrastructure is still here and the platforms that remain active, the activity has slowed in all fields.”
“At the present time, it appears that the sector is in a decade style, waiting for either the market recovery or the new state of use to revive attention.”
Gherghelas added that other fossil factors that could revive NFT lend were tools to facilitate NFT borrowing holders against symbols, and that protocols should create “smart infrastructure” such as hidden loans, credit degrees and risk of artificial intelligence.
The report adds that since January of last year, the borrower’s activity has decreased by 90 % and a decrease in those wishing to lend by 78 %.
The average NFT loan also got a peak of $ 22,000 in 2022 to 4000 dollars in May, a decrease of 71 % on an annual basis.
Gherghelas said this shift “shows that users are borrowing against low -value assets or are simply more conservative with influence.”
The average loan period is also less. After reaching nearly 40 days in 2023, it decreased to 31 days and settled during 2024 until 2025.
“The loans are taken frequent but for shorter periods, perhaps a sign of more tactical liquidity plays,” said Gherghelas.
The decline in the NFT market also harms lending
Part of the slowdown in NFT LENDING is connected to a decrease in the total NFT market, which witnessed a decrease in sizes of 61 % in the first quarter to $ 1.5 billion compared to $ 4.1 billion last year.
“With the collapse of the side value, the lending activity was followed naturally,” said Gherghelas. “There are some exceptions that managed to keep traction or restore them, but they were extremist, and not enough to raise the sector.”
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The protocol scene is also narrowed, and the number of active NFT lending applications is limited, with eight protocols only with any meaningful share.
“The luxury liquidity model that worked through the bull market is not designed for a quieter and more wondering environment, but this does not mean the end of NFT lending; it simply turns focus,” said Geraglas.
“Diversification of platforms, cases of use turns, and side preferences change. If the next wave depends on benefit, culture and the best design, NFT LENDING may find just its second wind – one built to continue.”
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