- Staggering decline in NFT lending volumes reported.
- GONDI leads market shift despite downturn.
- Substantial reduction in user activity and loan sizes.
GONDI leads the NFT lending market amidst a staggering 97% decline in trading volumes since January 2024, according to DappRadar’s recent report on the sector.
Market Overview
NFT lending volume has plummeted from nearly $1 billion in January 2024 to $50 million in May 2025. Key players in the market, such as GONDI, have adapted by offering stable lending options for art NFTs.
User numbers show significant reductions, with borrowers decreasing 90% and lenders dropping 78% since January 2024. GONDI’s strategy involves longer-term lending, overtaking competitors like Blend.
A 97% decline in volume substantially affects user and market confidence. The NFT market downturn mirrors shrinking values in NFTs, causing collateral values and lending to decrease.
Sara Gherghelas, Analyst, DappRadar, “With collateral value collapsing, the lending activity naturally followed.”
This crash parallels broader NFT market declines, with trading volumes down 61% in early 2025. Analysts cite the need for stronger market utility as shifts in the ecosystem unfold.
Potential recovery hinges on real-world asset inclusion and new market applications. GONDI’s dominance may drive strategic adaptations while regulatory clarity could embolden confidence within the NFT ecosystem.
