The NFT blur market is growing by leaps and bounds.
With the launch of Blend, Blur’s new lending platform reaches another milestone.
Data from Dune shows that Blend has facilitated more than 100,000 ETH in total volume, or roughly $181 million, just 17 days after launch.
Blend allows users to borrow Ethereum by putting up their NFTs as collateral. They can then use this loan to buy new NFTs on the Blur marketplace. In return, the liquidity provider receives interest, a mechanism that has given rise to the “NFTFI” niche in cryptocurrency.
While the project garnered more than 3,000 loans from 900 unique lenders, Monday’s Bored Apes Yacht Club (BAYC) and Mutant Apes Yacht Club (MAYC) collections further fueled NFT collectors’ enthusiasm.
These sets were added to the four sets already available, Azuki, Shrouded Cryptopunks, Degods and Miladys.
BAYC and MAYC represented a total volume of 2,267 ETH on the first day. On Wednesday, BAYC was the third most-traded coin on the platform, behind Azuki (4,616 ETH) and Wrapped Cryptopunks (2,260 ETH), with a volume of 3,082 ETH.
Azuki remains the top gainer in total volume, surpassing 50,000 ETH, which accounts for almost half of the total volume since the creation of the service.
Currently, Blend does not charge any commission to borrowers or lenders. However, Blur has indicated that token holders can vote to implement the fee after a period of 180 days.
Blur’s rocky start
Launched last fall, Blur quickly became the most popular NFT marketplace, accounting for nearly 59% of total NFT trading volume ever.
However, some suspect that the platform hosts money laundering operations, especially during token launches.
According to analyst HildHobby, Blur only had 14,575 traders compared to OpenSea’s 46,353.
In late February, NFT sales tracking platform CryptoSlam announced it would be removing $577 million worth of Blur trades from its data due to “market manipulation”. The platform also said that it will filter out future blur trades on its platform using an updated algorithm that filters out suspicious sales.
However, Blend’s success only strengthens Blur’s position, which looks set to establish itself as a major player in the NFT ecosystem in the long run.