Can the sector find a new life?

After a short wave of optimism in early 2024, the NFT lending market slowed. As of May 21, 2025, loan sizes diminished to a little more than $ 50 million – a severe decrease by 83 % since January and 97 % amazing from the highest level in January 2024. At its peak, activity increased with platforms like Blur’s Blend and NFTFI that attracts merchants keen to reach liquidity without selling NFTS.
However, attention was faded today, which indicates that the noise about NFT lending has lost its attractiveness amid the current market facts.
NFT loan in the crisis
The decline in NFT lending is closely related to the wider stagnation in the NFT market. Several top -class groups have witnessed that their prices on Earth exceed 50 % of peak levels, which leads to the erosion of the value of guarantees, and thus lending activity. While a handful of projects has shattered this trend, it remains rare exceptions unable to revive the sector.
The average loan period was 31 days in May, while maintaining a fixed direction seen during the year 2024 until 2025. a reportHints in a shift in the behavior of the borrower towards the shortest and strategic use of liquidity, rather than long -term obligations.
The average NFT loan in May 2025 was only $ 4,000, a sharp decrease from 14,000 dollars in May 2024 and 22,000 dollars in early 2022, which represents an annual decrease of 71 %. It indicates that borrowers either use NFTS less valuable or avoid heavy leverage. The user base has also collapsed: borrowers and active lenders decreased by about 90 % and 78 %, respectively, since their peak in January 2024.
Restore the sector
To lend NFT to restore momentum, new drivers are necessary. DAPPRADAR has stated that the inclusion of NFTS into the real world (RWA)-such as real estate symbols or the return codes-can provide stronger and more reliable guarantees.
The simplified facades based on the intention that coincides with the terms of the loans to the user’s needs may reduce the complexity and attract more users.
In addition, development beyond traditional lending from peers can lead to a counterpart towards smarter infrastructure, including unrestricted options, credit descriptions, and artificial intelligence -based risk tools, to raise the ecological system and make NFT lending more applicable and developing.
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