Blend users have borrowed over 2.800 ether (about $5,2 million) using Azuki’s NFT avatars as collateral.
Blend allows its users to borrow using NFTs from the Ethereum-based crypto collections Azuki, CryptoPunks and Milady as collateral.
Owners of these non-fungible assets can access liquidity without having to sell their holdings.
Blend launched on Monday as a peer-to-peer perpetual lending platform where users can hold borrowing positions indefinitely until liquidation.
Over $5 million in Azuki-backed loans at Blend
Currently, the most commonly borrowed collection on Blend is Azuki.
Data platform Dune Analytics shows that the total volume of loans generated with Azuki is 2.831 ethers, valued at around $5,2 million based on the current market price of Ethereum (ETH).
Source: Dune Analytics (@beetle)
On your first day, Blend has generated almost 1.000 NFT loans, Of these, 454 are active. The total value of these loans secured by non-fungible tokens amounts to $10,6 million.
CryptoPunks and Milady holders have borrowed 1.832 ETH and 1.045 ETH, respectively.
Azukis, CryptoPunks and Milady`s
While CryptoPunks are considered the pioneers of crypto art, Azuki’s NFT collection has become one of the most popular and valued in the industry. According to the NFT marketplace, Azukis are trading at a minimum selling price of 16,93 ETH (about $31.500). This crypto collection has generated a total sales volume of 504.654 ethers.
On the other hand, the current minimum price of CryptoPunks is 15,3 ETH and Milady is 3,41 ETH.
Interest in the NFT market is renewed
Despite the factors that came together in 2022 and accentuated the fall in cryptocurrency prices, significantly affecting the NFT market, this year the sector seems to be coming back to life.
Dune Analytics data shows a significant increase in the number of borrowers and lenders using different platforms to access loans through their NFTs.
In addition to Blend, platforms like NFTfi have grown exponentially this year. According to Dune Analytics, the volume of loans generated on NFTfi last April was 13.492 ether (about $25 million dollars).
NFT token owners see their non-fungible assets as a viable option to access liquidity without having to go through a bank or intermediary. In this way, NFT token holders can take advantage of the value of their artworks and crypto collectibles without having to sell them or lose ownership.
What is Blend?
Blend is a new perpetual lending platform that allows users to lend and borrow against any type of collateral, including NFT tokens.
The platform is backed by NFT marketplace Blur and Web3 investment firm Paradigm. Its main goal, as Blur developers explained via Twitter, is to unlock liquidity in the NFT market.
Continue reading: Bugatti and Asprey collaborate to launch NFTs on the Bitcoin blockchain
