NiftyNoon: What does Blur Lending Mean for NFT Prices?
Blur lending has shaken up the entire NFT market but questions remain about its long term impact on prices (May 2, 2023)
Nifty Thought
The introduction of Blur Lending (also known as Blend) is massive. Blur has made a few core adjustments to the peer-to-peer (p2p) non-fungible token (NFT) lending experience we have already come to know on platforms such as Arcade and NFTFi.
Blur Lending loans are technically perpetual with no fixed term. However, the lender can recall the loan at any given point. Unlike traditional p2p NFT loans, called loans do not get forced into liquidation if the loan is not repaid. Rather, prospective lenders can bid to take over the loan. This means that loans are unlikely to be liquidated unless they are already underwater. In other words, the days of getting a Bored Ape Yacht Club (BAYC) for 20 ETH due to an NFTFi loan liquidation are likely over. Another core addition Blur has made to the NFT lending landscape is the introduction of "Buy Now Pay Later" (BNPL), which allows the buyer to purchase an NFT upfront on a loan and gradually pay it off. These loans are funded by lenders that are underwriting risk for the overall NFT collection, who then make collection-wide loan offers. In a sense, this further decreases the value of mid-tier NFTs in collections. Blur's real innovation here is streamlining the process that enables an NFT buyer to take out a loan against an NFT they do not yet own. While BNPL has been available on other platforms previously, it has never been so deeply integrated into a marketplace that people actually use.
The net result of all of this is the introduction of new synthetic liquidity that will likely push prices up. Projects with Blur Lending enabled, such as Azuki and CryptoPunks, have already experienced large run-ups in price. Furthermore, these collections have $BLUR incentives for listing turned off. Instead, there are only token incentives for bidding and lending, both of which lead to more buying pressure. This will likely be highly positive for NFT asset prices in the short term. In the long term, however, this could lead to complications as lenders begin to exit the system and prices cascade down. This is likely a great exit opportunity for motivated parties to take profits.
Highlighted News
Blur introduces Blend, the Peer-to-Peer Perpetual Lending Protocol for NFTs, that enables 10x higher yield opportunities than current DeFi protocols and unlocks greater liquidity for NFTs:
Blur Blend goes live with 3 collections at 3 different price points to start and points updated:
https://twitter.com/blur_io/status/1653101755809562624?s=46&t=1Htus396yShStdTR9uaf8w
Project and Community News
NFT Lending for Dummies and The Implications of Blend; Blur's New Peer-to-Peer Lending Product from a lender who has given 8 figures worth of NFT-backed loans over the last few months:
https://twitter.com/cirrusnft/status/1653098744643190784?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
RTFKT posts RTFKT x Takashi x Betak teaser:
Sotheby’s Metaverse Market place fully on-chain with priority on artists:
https://twitter.com/michaelbouhanna/status/1653047400234205191?s=46&t=rKbvPxeJxBxnuqUnrIFcMQ
Goblintown new free mint with more details coming soon:
https://twitter.com/ajt/status/1653062965359247362?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Phantom wallet goes multichain:
https://twitter.com/phantom/status/1653030159245770752?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Digi Daigaku announces Bitcoin Ordinal NFTs coming soon:
Doodles Community Council selections to be announced today:
https://twitter.com/austin_hurwitz/status/1653047175465533441?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Doodle #9146 bought for 5.00 WETH (9,222.60 USD) on Opensea:
https://twitter.com/doodlessalesbot/status/1652872728129728513?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
100 ETH thrown in $ PEPE from KillaCubs mint funds by KillaBears Deployer:
https://twitter.com/gemsscope/status/1653036746651709444?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Quick Stats:
OpenSea ETH Daily Volume: 2,831 ETH (▲ 9.69%)
Blur ETH Daily Volume: 12,217 ETH (▲ 79.50%)
BTC: $28,062.88 (▼ 1.96%)
ETH: $1,836.13 (▼ 0.72%)
Solana: $21.91 (▼ 1.90%)
Polygon: $0.96 (▼ 2.31%)
NFT Daily Winners:
⛩️ Azuki: 16.30 ETH (▲ 10.40%)
🚬 CryptoPunks: 54.90 ETH (▲ 9.82%)
🧟 Mutant Ape Yacht Club: 11.20 ETH (▲ 6.53%)
🦧 Bored Ape Yacht Club: 49.77 ETH (▲ 5.22%)
🧬 Clone X: 3.05 ETH (▲ 3.08%)
🐧 Pudgy Penguins: 4.12 ETH (▲ 0.37%)
🥃 Proof Collective: 6.80 ETH (▲ 0.15%)
🏴☠️ Captainz: 7.40 ETH (▲ 0.14%)
🏳️🌈 Chromie Squiggles: 9.00 ETH (► 0.00%)
🐈⬛ VeeFriends: 2.33 ETH (► 0.00%)
NFT Daily Losers:
🧝🏼♀️ DigiDaigaku: 3.74 ETH (▼ 0.27%)
🥔 Potatoz: 2.98 ETH (▼ 2.61%)
🦉 Moonbirds: 2.75 ETH (▼ 6.14%)
🌈 Doodles: 2.41 ETH (▼ 6.21%)
Notes:
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