OpenSea activity on the rise as Polygon cements position as the most active NFT blockchain
Cover art/illustration via CryptoSlate
NFT lending has had its strongest month, with $444 million in monthly volume throughout January.
A new report from NFTGators noted the “significant surge in NFT activity” as Polygon NFTs again surpassed Ethereum in volume. The rise in NFT lending is partly responsible for the increase in activity. BendDAO had the most significant volume in January at $36 million.
NFT activity increases
The rise in NFT lending is a part of a wider NFT resurgence. OpenSea activity increased as 319,641 Ethereum users sold 1,132,681 NFTs, while 224,719 Polygon users traded 1,514,895 NFTs in January.
As a result, the average NFT on Ethereum traded for $1390, buying an average of 3.54 NFTs. On the other hand, the sale price on Polygon was just $69, with an average of 7 NFTs per user. Therefore, Ethereum traders spent an average of $4,920, and Polygon traders invested $483.
The below charts visualize the data and the uptick in Polygon NFT activity.
Monthly NFT loan volume (ETH). Source: Dune/rchen8
The surge in NFT Lending
The report disclosed that 17,900 ETH was distributed through 4,399 loans. The average loan value was 4 ETH per loan, 29 ETH per borrower, and 61.5 ETH per lender.
The increased activity has also reduced the cost of NFT loans, as lenders pay an average of $90 per loan in interest payments.
Outside of the market leader, BendDAO, other platforms such as NFTfi, X2Y2, and Arcade made up an additional $44.8 million.
Loan volume was below 1,000 ETH per month during the NFT bull run of 2021, and it previously peaked shortly before the Terra Luna crash in May 2022.
Monthly NFT Loan Volume (Source: Dune)
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Author: Liam ‘Akiba’ Wright
