NFT lending continues to rise as over 18k ETH borrowed in January

Feb. 18, 2023 at 8:00 pm

By Dorian Batycka

January saw the NFT lending sector return to previous ATHs not seen since May 2022.

According to a new report by digital asset analytics firm eBit labs, NFT lending hit a record month in January, returning to numbers not seen since the sector’s previous all-time high in May 2022. 

The report used on-chain data of loans backed by Bored Ape Yacht Club (BAYC) and examined BAYCs according to loan price, duration, liquidation value, and marketplace dominance.

Furthermore, eBit labs discovered that the amount borrowed in Jan. 2023 had returned to peaks not seen since May 2022. For the first time in more than nine months, weekly loan volume totaled more than 6,000 ETH in the first week of Jan. Furthermore, the total borrowed throughout January reached more than 18,000 ETH – or $30,516,660 as of press time. 

In the midst of 2022, the lending industry gained widespread attention as the declining floor price of BAYC sparked market pressure and heightened concerns about potential liquidation, ultimately leading to a liquidity crisis, the report also found.

Competition among platforms gets more intense

Since its launch, BendDao has maintained a consistent maximum advance rate of 40%, notably lower than the advanced rates of up to 80% offered by other peer-to-peer NFTfi platforms.

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