NFT lending was the strongest month, with $444 million in monthly volume during January.

new report from NFTGators noted a “significant spike in NFT activity” as Polygon’s NFTs once again surpassed Ethereum in volume. The growth in NFT lending is partly responsible for the increase in activity. BendDAO had the most significant volume in January with $36 million.

NFT activity increases

The growth in NFT lending is part of a broader NFT renaissance. OpenSea activity increased, with 319,641 Ethereum users selling 1,132,681 NFTs and 224,719 Polygon users selling 1,514,895 NFTs in January.

As a result, the average NFT on Ethereum was trading at $1,390, buying an average of 3.54 NFTs. On the other hand, the sale price on Polygon was only $69, averaging 7 NFTs per user. So Ethereum traders spent an average of $4920 and Polygon traders spent $483.

The charts below show the data and the spike in Polygon NFT activity.

Surge in NFT Lending

The report indicated that 17,900 ETH was distributed in the form of 4,399 loans. The average cost of a loan was 4 ETH per loan, 29 ETH per borrower and 61.5 ETH per lender.

The increase in activity has also lowered the cost of NFT loans, as lenders pay an average of $90 per loan in interest payments.

In addition to market leader BendDAO, other platforms such as NFTfi, X2Y2, and Arcade generated an additional $44.8 million.

Loan volume was below 1,000 ETH per month during the 2021 NFT bull market and previously peaked just before the Terra Luna crash in May 2022.

Liam “Akiba” Wright

Editor and Producer of Cryptooshala

Liam, also known as Akiba, is a Blocklight journalist and editor at Cryptooshala. He believes that decentralized ledger technology can lead to widespread positive change. He predicts that the next 10 years will bring the dawn of a new era of technological innovation.