After a slight uptick in early 2024, the NFT lending market has once again entered a period of stagnation. According to DappRadar, since the beginning of 2025, total loan volume in the sector has amounted to just over $50 million — a drop of 83,000% compared to January, when activity on platforms like Blur Blend and NFTfi approached $1 billion due to traders’ sharp interest in liquidity without selling NFTs.
Sharp Decline in Collection Prices Undermines the Market
The drop in lending volume is directly linked to the collapse in prices of major NFT collections. Their floor prices have fallen by over 50%, which drastically reduced the collateral value and, consequently, the number of loans. A few collections have managed to hold their ground, but analysts believe that’s not enough to stabilize the sector.
The average loan size in May was $4.000, compared to $14.000 a year ago and $22,000 in 2022 — a 71,000% decline year-on-year. Loan durations also fell from 40 to 31 days. Users are increasingly opting for short-term loans, likely for tactical liquidity rather than long-term investments.
How NFT Lending Performed. Source: DappRadar
In January 2024, there were over 20,000 borrowers and 3,700 lenders in the market. By May 2025, those numbers had dropped to 2,049 and 828, respectively — about a 90% drop in borrowers and a 78% drop in lenders. Trust and interest in this market have clearly diminished.
Lenders and Borrowers in NFT Lending. Source: DappRadar
Blend Loses Leadership, GONDI Takes the Lead
At the beginning of 2025, Blur Blend controlled over 96% of the NFT lending market. Now, GONDI has taken the top spot with a 54.2% market share, while Blend has dropped to around 30%. Analysts see this shift as a sign that demand is moving from speculation toward more structured models.
NFT Lending Leaders. Source: DappRadar
Blend lost momentum after its token airdrop campaign ended and trader activity declined. GONDI, on the other hand, increased its market presence throughout the first quarter of 2025, offering a more stable user experience.
Competition Among Protocols Remains Low
Only eight platforms hold a noticeable share of the market. After GONDI and Blend come:
The overall picture shows that the market has deflated but continues to function. User behavior is shifting, and payment patterns are evolving.
Who Holds the Liquidity
Among collections used as collateral, Pudgy Penguins dominate. Since the beginning of 2025, they have accounted for $203 million in loan volume — 40% of all loans. The collection remains stable thanks to a strong community, recognizable IP, and relatively resilient pricing.
Next come Azuki ($85 million, 17%) and BAYC ($46 million, 9%). Others — Doodles, Milady, Lil Pudgys, MAYC — hold between 5% and 9%. More volatile projects like Azuki or Milady are often subject to liquidations due to price fluctuations.
Top NFT Collections. Source: DappRadar
GONDI Bets on the Art Market
According to the report, GONDI has shifted its focus from PFP collections to art NFTs and unique tokens. CryptoPunks top the list with $21 million in active loans. Users are choosing tokens with verified artistic value and cultural weight.
This trend indicates a shift in priorities: rather than chasing short-term profit, the market is now looking for long-term value and quality collateral. Art projects like Fidenza and Autoglyphs are becoming new pillars for lenders.
The Market Is Transforming, Not Declining
Despite the sharp decline in volume and user numbers, the NFT lending market hasn’t disappeared — it is restructuring. In 2023, more than 20 platforms were active. Today, only a few remain. Taking a leading position is now harder, but a new wave of growth is possible.
According to DappRadar analyst Sara Gherghelas, the sector needs new catalysts:
NFTs tied to real-world assets (real estate, securities).
More intuitive interfaces tailored to loan purposes (e.g., “get $3,000 for 30 days”).
