NFT Lending Plummets 97%: Industry in Turmoil, Searching for Revival

Following a brief burst of optimism early in 2024, the NFT lending market has experienced a dramatic downturn. Data reveals loan volumes have plummeted to just over $50 million as of May 21, 2025 – a staggering 97% drop from its peak in January 2024, and an astounding 83% decline since its peak in early 2024. Platforms like Blur’s Blend and NFTfi, which previously attracted traders seeking liquidity without selling their NFTs, have seen activity evaporate as market realities take hold. 2025 has witnessed a stark shift away from the hype surrounding NFT lending.