NFT Lending Volume Collapses 97% as Market Hype Fades
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The NFT lending market has suffered a dramatic collapse, with loan volumes plunging 97% from January 2024 peaks to just $50 million as of May 2025. Platforms like Blur’s Blend and NFTfi, once bustling with traders seeking liquidity, now face evaporating interest as the broader NFT downturn erodes collateral values.
Floor prices for top collections have halved from their highs, crippling lending activity. Average loan sizes have shrunk to $4,000—a 71% annual decline—while durations hold steady at 31 days, suggesting borrowers favor short-term liquidity maneuvers over sustained commitments.
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