A well-known collector and trader under the pseudonym punk9059 on the social network X (formerly Twitter) spoke about the state of affairs in the non-fungible token (NFT) market.. He said that over the past 24 hours, more than 13 million loans were issued or refinanced on the Blend platform at 0% APY (annual yield).
He noted that many market participants are asking about the reasons for the increase in the total volume of loans issued on Blend. According to the expert, the reason is that users want to get the Blast token. The expert assured, “most new loans are issued at 0% per annum, which only makes sense if you earn points.”
The researcher also emphasized that, “as the bull market sets in, aiming to get 3-5% in Aave from the ETH supply will no longer make sense. This is why Blend's creditors are likely to give in, even if it only promises them 10-20%.»
Subscribers supported the expert. Some wrote that they agreed with his opinion about tokens. They believe that “if the majority of loans are 0% interest loans, this is mainly done by those who have high hopes for the future Blend cryptocurrency airdrop.”
In addition, NFT researcher punk9059 noted that Blend’s average interest rates on loans are at 70-80% LTV over the last 2 days. Lifetime Value means “customer lifetime value”. This parameter demonstrates how much money the client brought to the platform during the entire time of interaction with it. This can be either an indicator of net profit or the total profitability of all transactions.
The analyst also added that NFT projects with the highest trading volume on the Blur platform are the most interesting for farmers and show the lowest rates. Gatherings include Azuki, Mutant Ape Yacht Club (MAYC) and others. Consequently, collections with lower ETH values receive higher rates.