The NFT lending market has reached a new milestone, hitting a record $2.13 billion in Q1, marking a 43.6% increase from the previous quarter. According to data from CoinGecko, the top platforms in the NFT lending space have seen a surge in volumes.

In Q1, the total NFT lending volume reached $2.13 billion, with January alone seeing $0.90 billion in lending volume, surpassing the previous peak in June 2023. Blend emerged as the leader in the space, capturing 92.9% of the market with a monthly lending volume of $562.33 million in March.

While Ethereum NFT collections dominate NFT loan originations, the impact of the rising popularity of Bitcoin Ordinals on the NFT lending market is worth noting. Other players in the NFT lending arena, such as Arcade and NFTfi, have also experienced growth, albeit with lower market shares.

To drive more user engagement, NFT lending platforms are introducing new incentives to boost trading volumes. For example, Arcade recently launched its “Clash of Clans” airdrop initiative, distributing ARCD tokens among 4,000 wallets. Similarly, X2Y2 and BendDAO have also introduced their own tokens for community members.

In a related development, Binance has entered the NFT lending market with a new loan service, further expanding the options available to users in the NFT space.

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