DappRadar: Real world assets may revive the declining NFT lending market

According to Cointelegraph, blockchain analysis platform DappRadar claims that real-world assets linked to NFTs may become a key catalyst for reigniting the declining NFT lending industry. Currently, the trading volume and user activity in this industry have significantly declined, leading to difficulties. DappRadar analyst Sara Gherghelas reported on May 27th that the trading volume of the NFT lending market plummeted from a peak of approximately $1 billion in January 2024 to $50 million in May, a decrease of 97%. She stated that NFT lending needs a "new catalyst" to revive, as real-world assets such as tokenized real estate can provide more stable and trustworthy collateral. In addition, since January last year, borrower activity has decreased by 90%, lenders have decreased by 78%, the average NFT lending scale has dropped from a peak of $22000 in 2022 to $4000 in May, and the average loan term has also shortened. At present, the industry seems to be waiting for market recovery or new use cases to reignite vitality.