{"id":300563,"date":"2023-02-18T20:00:14","date_gmt":"2023-02-18T20:00:14","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=300563"},"modified":"2023-02-19T14:33:46","modified_gmt":"2023-02-19T14:33:46","slug":"nft-lending-continues-to-moon-as-over-18k-eth-borrowed-in-january","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/nft-lending-continues-to-moon-as-over-18k-eth-borrowed-in-january\/","title":{"rendered":"NFT lending continues to rise as over 18k ETH borrowed in January"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to a new<a href=\"https:\/\/ebitlabs.com\/\"> report<\/a> by digital asset analytics firm eBit labs, <a href=\"https:\/\/cryptoslate.com\/nfts\/\">NFT<\/a> lending hit a record month in January, returning to numbers not seen since the sector's previous all-time high in May 2022.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The report used on-chain data of loans backed by Bored Ape Yacht Club (BAYC) and examined BAYCs according to loan price, duration, liquidation value, and marketplace dominance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, eBit labs discovered that the amount borrowed in Jan. 2023 had returned to peaks not seen since May 2022. For the first time in more than nine months, weekly loan volume totaled more than 6,000 ETH in the first week of Jan. Furthermore, the total borrowed throughout January reached more than 18,000 ETH &#8211; or $30,516,660 as of press time.\u00a0<\/span><\/p>\n<figure id=\"attachment_300836\" aria-describedby=\"caption-attachment-300836\" style=\"width: 1898px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-300836 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-1.png\" alt=\"Leding Platform Volumes\" width=\"1898\" height=\"1348\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-1.png 1898w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-1-300x213.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-1-1024x727.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-1-768x545.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-1-1536x1091.png 1536w\" sizes=\"(max-width: 1898px) 100vw, 1898px\" \/><figcaption id=\"caption-attachment-300836\" class=\"wp-caption-text\">Leding Platform Volumes (Source: eBitlabs)<\/figcaption><\/figure>\n<p>In the midst of 2022, the lending industry gained widespread attention as the declining floor price of BAYC sparked market pressure and heightened concerns about potential liquidation, ultimately leading to a liquidity crisis, the report also found.<\/p>\n<figure id=\"attachment_300837\" aria-describedby=\"caption-attachment-300837\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-300837 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-2.png\" alt=\"Liquidation versus Series Floor \" width=\"1800\" height=\"1352\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-2.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-2-300x225.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-2-1024x769.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-2-768x577.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-2-1536x1154.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-300837\" class=\"wp-caption-text\">Liquidation versus Series Floor (Source: eBitLabs)<\/figcaption><\/figure>\n<h2>Competition among platforms gets more intense<\/h2>\n<p>Since its launch, BendDao has maintained a consistent maximum advance rate of 40%, notably lower than the advanced rates of up to 80% offered by other peer-to-peer NFTfi platforms.<\/p>\n<p>However, in September 2022, the entry of X2Y2 into the market disrupted this status quo by offering advance rates exceeding 100%. As a result, BendDao faced intense competition and user attrition, prompting it to raise its advance rates to 60% to remain competitive. This adjustment was made during the winter holiday season.<\/p>\n<figure id=\"attachment_300838\" aria-describedby=\"caption-attachment-300838\" style=\"width: 1884px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-300838 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-3.png\" alt=\"Advance rates of graphs indicating platform distribution\" width=\"1884\" height=\"1344\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-3.png 1884w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-3-300x214.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-3-1024x730.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-3-768x548.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-3-1536x1096.png 1536w\" sizes=\"(max-width: 1884px) 100vw, 1884px\" \/><figcaption id=\"caption-attachment-300838\" class=\"wp-caption-text\">Advance rates of graphs indicating platform distribution (Source: eBitLabs)<\/figcaption><\/figure>\n<h2>Janusry 2023 peaks<\/h2>\n<p>Several factors propelled January's surge in NFT lending, the report says. One major factor was market exuberance and the Yuga Labs' Dookey Dash News, which encouraged users to ramp up Yuga-related lending activity. According to research, the bulk of loans issued across the three primary lending platforms was against Bored Apes, with short-term loan balances for BAYC hitting record highs in January 2023.<\/p>\n<figure id=\"attachment_300839\" aria-describedby=\"caption-attachment-300839\" style=\"width: 1896px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-300839 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-4.png\" alt=\"BAYC Borrowing in ETH\" width=\"1896\" height=\"1352\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-4.png 1896w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-4-300x214.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-4-1024x730.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-4-768x548.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-4-1536x1095.png 1536w\" sizes=\"(max-width: 1896px) 100vw, 1896px\" \/><figcaption id=\"caption-attachment-300839\" class=\"wp-caption-text\">BAYC Borrowing in ETH (Source: eBitLabs)<\/figcaption><\/figure>\n<h2>Insights<\/h2>\n<p>The data shows that the overwhelming majority of loans are either repaid or liquidated within a single day, with longer-term loans constituting a much smaller portion of the total. This trend suggests that potentially many borrowers are utilizing these loans to address immediate liquidity requirements rather than as a hedge against market-value fluctuations.<\/p>\n<figure id=\"attachment_300840\" aria-describedby=\"caption-attachment-300840\" style=\"width: 1894px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-300840 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-5.png\" alt=\"Loan durations\" width=\"1894\" height=\"1360\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-5.png 1894w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-5-300x215.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-5-1024x735.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-5-768x551.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-5-1536x1103.png 1536w\" sizes=\"(max-width: 1894px) 100vw, 1894px\" \/><figcaption id=\"caption-attachment-300840\" class=\"wp-caption-text\">Loan durations (Source eBitLabs)<\/figcaption><\/figure>\n<p>A lull in activity between the 6th and 14th hour (UTC) on weekdays &#8211; outside the general US waking hours &#8211; suggests that a substantial portion of the activity occurs within the United States.<\/p>\n<figure id=\"attachment_300842\" aria-describedby=\"caption-attachment-300842\" style=\"width: 1904px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-300842 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-6-a.png\" alt=\"When Borrowing Occurs\" width=\"1904\" height=\"916\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-6-a.png 1904w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-6-a-300x144.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-6-a-1024x493.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-6-a-768x369.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/Figure-6-a-1536x739.png 1536w\" sizes=\"(max-width: 1904px) 100vw, 1904px\" \/><figcaption id=\"caption-attachment-300842\" class=\"wp-caption-text\">When Borrowing Occurs (Source: eBitLabs)<\/figcaption><\/figure>\n<p>Overall, the report concluded that:<\/p>\n<blockquote><p>\u201cThe availability of NFT lending meets a valuable market need and helps fuel the ongoing development and sophistication of the entire NFT ecosystem. Drivers for the borrowing are likely wide-ranging, however it\u2019s clear that these loans can meet both short and longer-term liquidity needs and also provide valuable market-value hedges.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>According to a new report by digital asset analytics firm eBit labs, NFT lending hit a record month in January, returning to numbers not seen since the sector&#8217;s previous all-time high in May 2022.\u00a0 The report used on-chain data of loans backed by Bored Ape Yacht Club (BAYC) and examined BAYCs according to loan price, [&hellip;]<\/p>\n","protected":false},"author":1406,"featured_media":295291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940,60035,76232],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NFT lending continues to rise as over 18k ETH borrowed in January<\/title>\n<meta name=\"description\" content=\"January saw the NFT lending sector return to previous ATHs not seen since May 2022.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/nft-lending-continues-to-moon-as-over-18k-eth-borrowed-in-january\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NFT lending continues to rise as over 18k ETH borrowed in January\" \/>\n<meta property=\"og:description\" content=\"January saw the NFT lending sector return to previous ATHs not seen since May 2022.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/nft-lending-continues-to-moon-as-over-18k-eth-borrowed-in-january\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-18T20:00:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-19T14:33:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/02\/nft-lending.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dorian Batycka\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dorian Batycka\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/nft-lending-continues-to-moon-as-over-18k-eth-borrowed-in-january\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/nft-lending-continues-to-moon-as-over-18k-eth-borrowed-in-january\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#person\",\"name\":\"Dorian Batycka\",\"url\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"caption\":\"Dorian Batycka\"},\"jobTitle\":\"Contributor\",\"description\":\"Dorian Batycka is a journalist interested in art and technology. 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