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The NFT lending market hit a record $2.13 billion in Q1, up 43.6% quarter-over-quarter, with five of six top platforms seeing increased volumes. 
The <a href="https://crypto.news/tag/crypto-lending/" target="_blank" rel="">lending market</a> of non-fungible tokens (<a href="https://crypto.news/tag/nft/" target="_blank" rel="">NFTs</a>) has witnessed its leaders solidifying their positions, with the total NFT lending volume surging to a quarterly high of $2.13 billion in Q1, representing a 43.6% quarter-over-quarter growth, according to <a href="https://www.coingecko.com/research/publications/top-nft-lending-platforms" target="_blank" rel="">data</a> published by CoinGecko. 
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 <img loading="lazy" decoding="async" width="1006" height="802" src="https://crypto.news/app/uploads/2024/04/hvmhch.png" alt="NFT lending volume reaches quarterly high with $2.1B in Q1, data shows - 17"> 
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 Top NFT lending markets by their volume | Source: CoinGecko
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The data shows that January witnessed a record-breaking $0.90 billion in total monthly NFT lending volume, surpassing the previous peak of $0.85 billion in June 2023. Among the top gainers, Blend emerged as the leader, capturing a staggering 92.9% share of the market with a monthly lending volume of $562.33 million in March alone. 
<blockquote class="wp-block-quote"> 
 “Despite Ethereum NFT collections dominating NFT loan originations, the potential impact of the rising popularity of Bitcoin Ordinals on the NFT lending market remains an area of interest.” 
 CoinGecko 
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 You might also like: <a href="https://crypto.news/blurs-blend-protocol-facilitates-nearly-170000-eth-loans-in-22-days/" rel=""> Blur’s Blend protocol facilitates nearly 170,000 ETH loans in 22 days </a> 
Other players in the NFT lending arena, such as Arcade and NFTfi, have also witnessed growth, although they represent significantly lower market share capturing 2.8% ($16.94 million in volume) and 2.2% ($13.3 million in volume) respectively. Further down the hierarchy, X2Y2, BendDAO, and Parallel Finance (formerly ParaX) hold smaller market shares of 0.8%, 0.8%, and 0.5%, respectively. 
To encourage more user engagement, NFT lending platforms are rolling out new incentives to boost trading volumes. For instance, in late February, Pantera Capital-backed Arcade <a href="https://crypto.news/pantera-capital-backed-nft-lending-startup-arcade-to-airdrop-3m-arcd-tokens/" target="_blank" rel="">unveiled</a> its “Clash of Clans” airdrop initiative, aiming to distribute ARCD tokens among 4,000 wallets, each eligible to claim 750 ARCD tokens. Similarly, other marketplaces like X2Y2 and BendDAO have also launched their own tokens for their community members. 
 Read more: <a href="https://crypto.news/binance-enters-the-nft-lending-market-with-loan-service/" rel=""> Binance enters the NFT lending market with loan service </a>

NFT lending volume reaches quarterly high with $2.1B in Q1, data shows

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