Blend, Blur’s new NFT perpetual lending protocol, has amassed $308 million in volume since May 1.
Earlier this month, NFT marketplace Blur launched a new NFT lending protocol called Blend. Despite having a mixed reception, the protocol has kicked off with a roaring start, claiming an 82% share in the NFT lending market in its first 22 days.
A new report by DappRadar revealed that since May 1, Blend has accumulated 169,900 ETH (approximately $308 million) in trading volume. The lending protocol now represents 46.2% of Blur’s total trading volume.
Azuki is the preferred NFT collection on Blend with a substantial 70,031 ETH ($127 million) in loan volume. Other popular collections on Blend include CryptoPunks, Bored Ape Yacht Club, Milady Makers and more.
Read more: “Extremely dangerous”: Blur’s Buy Now Pay Later NFT lending protocol triggers mixed response
Blend matches users looking to borrow against their NFTs with lenders offering the most competitive rates. Blur likens it to home ownership via mortgaging.
In practical terms, Blur explained: “If you have a Punk, you can now borrow up to 42 ETH within seconds. If you want an Azuki, you can now buy one with just 2 ETH up front”.
Why did Blend attract controversy when it first launched?
Crypto Twitter gave a divided response when Blend first launched. Some welcomed the protocol for enabling liquidity, and others praised it for allowing investors that would otherwise be priced out to enter the NFT market.
A string of valid concerns remain though, such as overexposure and volatility.
“The first rule for NFTs”, NFT collector ‘Taki’ tweeted: “is only invest money you can afford to lose. If you need a loan, you’re overexposed.”
They added: “Just don’t do it and don’t let blur tell you something else. In this space there are kids playing with money. Giving them a loan and take their pocket money is just criminal.”
Web3 lawyer Jesse Hynes went as far as tagging the SEC in a tweet, citing the protocol as “extremely dangerous”. He said: “Seriously tho, people are now getting loans for above floor price. If you want to sell you’ll probably get more by taking a loan on the NFT and never making payments….”
Volatility also remains a key concern, with one Twitter user stating: “The last thing this VOLATILE space needed was a lending protocol to lend a volatile asset in a highly volatile market to purchase another expensive volatile asset. I wonder why the Web3 is not maturing.”
Blend may have kicked off to a controversial start, but the meteoric success of its first month shows that demand for the protocol is soaring.
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