Since the NFT marketplace Blur started its loan program, sales of nonfungible tokens—digital pictures of apes and cupids—seem to be going up from their lowest levels since 2021.
Blend, a peer-to-peer loan tool
Blend is meant to make NFTs more liquid and lets owners quickly borrow against their digital photos. It also lets users buy rare NFTs for a small fraction of what they would normally cost.
Tracker Dune says that Blend has given out 1,338 loans worth 13,842 Ether, which is close to $26 million. It has had a big affect on the NFT market right now. DappRadar, a company that keeps track of sales, says that sales of non-fungible tokens (NFTs) dropped by almost 19% in April to $1.4 billion, but purchases have been 30% higher over the past week.
Pedro Herrera, head of research at DappRadar, said on Blend, “The chance to buy a Punk for 10 ETH with a 0.5% interest rate might sound too good to people who have been waiting too long to ape in.” “At the same time, warning people is very important.”
An story on Bloomberg (https://www.bloomberg.com/news/articles/2022-06-08/celebrity-NFTs-what-Justin-Bieber-and-Madonna-have-to-tell-fans) “”) says that celebrities like Paris Hilton made collections of NFTs, and Justin Bieber bought the digital photographs. But when all coins crashed in late 2021, NFTs also lost value. Bitcoin, on the other hand, has gone up by almost 70% so far this year, while NFTs have not come back.
Dune says that the number of trades on the NFT platform OpenSea was the lowest last month since June 2021.
Gauthier Zuppinger, co-founder of the tracker NonFungible.com, says that during the last two weeks of April, only about 80,000 NFT wallets were active each week, compared to an average of about 150,000 each week.
The amount of US dollars worth of Ethereum traded on the NFT Marketplace every month.
DappRadar says that Blur made up about 84% of NFT trade volume last month because it has no fees and its own token. According to the expert, NFT sales as a whole went down by 10%.
Blend has helped the market, but prices are still being pushed up. Tracker NFT Price Floor says that the average sales price of Bored Ape Yacht Club has gone down by 5% in the last 30 days. (https://nftpricefloor.com/) “”) The tracker says that during the same time frame, the average price of Popular CryptoPunks has dropped by more than 7%, and the number of sales has dropped by 40%.
Daniel Maegaard, a well-known NFT trader, says that the way the market is acting shows that we are in a “capitulation phase,” but that I should expect a rebound in a year.
Even though it’s not clear if NFTs have hit their low point for 2023, Zuppinger forecast that the market won’t grow as quickly as it did in 2021.
He went on to say that we probably won’t see something like this happen again for a while.
Lorenzo Melendez, president of the NFT project Pudgy Penguins, states that one big problem is that many NFT projects haven’t been able to think of new ways to make money for their customers or connect with their communities.
Melendez said, “The system had a lot of excess money in it. When push comes to shove and people need money to pay rent, people are going to liquidate their NFTs.”
Content Source: bloomberg.com