The non -bubble tokens loans market, formerly considered the only sector that could have saved the world market for non -fascinable tokens from the liquidity crisis and market stabilization, is in critical condition at the moment, with reports indicating that the sector is decreasing by more than 95% of its high season in 2024. In this article, we will explore in depth as well as what can be done This Diging sector.
NFT loans fall from 97% of ATH
Data compiled by Dappradar.com, an aggregator of data on the crypto-chain market and an explorer of non-drinkable tokens, shows that the non-loot token loan volume fell from almost $ 1 billion to just over $ 50 million from May 20. Fallen by 78%.
📉 The volume momentum has disappeared
From almost $ 1 billion to only $ 50 million in May 2025, the loans volume collapsed. Without incentives and with downward soil prices, users have lost confidence.
Here is the drop in action: pic.twitter.com/sgrm7ojnip
– Dappradar (@dappradar) May 27, 2025
By description, “NFT Lending”, also known as “NFT’s loan”, is a form of loan where individuals or organizations use their NFT collections as guarantee to guarantee cryptographic liquidity. NFT loan platforms began to appear in 2020, with first examples such as “NFTFI” launched in May 2020. These platforms allowed users to borrow funds (generally ETH) using their NFT as guarantee.
The NFT loan sector began to gain more land in 2021 and 2022, with platforms such as Cidade taking the lead in 2022. The sectors increased in 2023 shortly after the blur of the NFT market platform launched its “mixed” loan protocol. In January 2024, the NFT loans market reached a $ 1 billion market, with platforms like Blur’s Blend and Nftfi noting a strong adoption of traders who seek to unlock cryptographic liquidity without selling their non-buttons.
The NFT loan sector has started to fall this year. In May 2025, the NFT loans market raised a loan volume of just over 5 million dollars, marking a drop of 83% since the start of the year and a decrease of 97% compared to the summit in January 2024. The sharp decline suggests that the NFT loan narrative is no longer convincing for crypto users in current market conditions.
Gondi at the top of the NFT loan volume
Gondi, a non-CULADIAL decentralized non-fungible loan protocol allowing a complete and partial refinancing of all exceptional loans, creating a more dynamic and liquid space, is the main NFT loan platform in 2025, eliminating the vague mixing protocol, previously renowned as an unwanted king of the NFT connection. In mid-May 2025, the Gondi protocol controlled 54.2% of the NFT loan market in progress, compared to the 30% Blend share.
The Gondi NFT loan protocol began to gain ground in T1 2025, using users looking for a more structured loan experience. Its recent success marks a major turning point, not only in the domination of platforms, but in the way in which loan demand moves to more sustainable and less speculative models. Behind Gondi and Blend are Nftfi, Arcade, Jpeg, Metastreet, Zharta and X2Y2 Nft Lending Platform.
In a market where the overall loan activity collapsed, several collections of blue chip NFT continue to explode in the volume of loans, not because of the media threshing of the market, but because they are well managed to maintain usefulness, liquidity, value or simply relevance. Fat penguins are a perfect example of NFT, leading the loan market by a wide margin. Since the start of 2025, they have generated more than $ 203 million in loans volume, representing 40% of all guaranteed loans.
Grassouillant penguins are followed from afar by the Azuki NFT collection, with $ 85 million, the APE Yacht Club NFT Bored Ape collection, with $ 46 million and the Doodles NFT collection. Other collections such as Doodles, Milady, Lil Pudgys and Mayc have contributed the volume of loan sales between 5 and 9% each. This distribution highlights a passage from speculative momentum games to collections with the strength of the perceived brand and long -term utility.
What is the next step for NFT loans?
The landscape of the NFT loan protocol, formerly curved, which houses more than 20 platforms, has shrunk to a smaller and more fragmented field. The current state of NFT loans tells a familiar story: the volume is down, the activity of users has collapsed and the speculative momentum has dried up. But with the latest changes in the domination of the NFT platform and collateral preferences, it is clear that it is not only a collapse but also a restructuring.
Even if the madness of NFT loans and loans is over, this does not mean that NFT loans are dead; This simply means that the sector changes its focus. In simpler terms, NFT loan platforms are diversifying, use cases change and collateral preferences change. If the next NFT wave will be built on utility, culture and better design, NFT loans may well find its second wave. Assets of the real world, including real estate and token invoices, could feed the next wave of NFT loans.
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