Real-world assets that mix with non-fought tokens (NFTS) is one among the few necessary catalysts that would develop the decreasing NFT credit sector again, which suffers from a collapse of volumes and user activity, says Blockchain Analytics Platform Dupradar.
The Volumina on the NFT credit market, which enables the NFT owners to take up a loan against their token in January 2024, dropped to 50 million US dollars by 97% in May, the Dupradar -Analystein Sara Gherghel said in a report on May 27.
Gherghelas said that NFT loans “transcend survival mode”, “recent catalysts” must be mandatory to re-sparkle the sector corresponding to real assets corresponding to tokenized real estate or earnings beam assets that would unlock more stable, trustworthy collateral sources.
“So far, in 2025 there was no convincing reason that NFT will return the loans,” she said. “While the infrastructure remains to be here and the platforms are energetic, the activity has slowed down across the board.”
Loaners and leading activities have scored an enormous hit within the NFT loan sector. Source: Dappadar
“At the moment, the sector appears to be in a holding pattern and waiting for the market recovery or for a brand new application to develop interest again.”
Gherghelas added that other catalysts who could repeat NFT loans were tools that make it easier for the NFT owners to borrow against their tokens and that protocols should create “intelligent infrastructure” corresponding to sub -collateralized loans, credit scores and artificial intelligence -risk -matching.
The report adds that the activities of borrowers have decreased by 90% since January last yr and those that are willing to borrow the loans has shrunk by 78%.
The average NFT loan size also won successful from $ 22,000 to $ 4,000 to $ 4,000 in May, which is a decrease of 71% in comparison with the previous yr.
Gherghelas said this shift “shows that either users borrow against lower value or just turn into more conservative.”
The average loan duration can also be lower; After a mean of around 40 days in 2023, it dropped to 31 days and kept stable in 2024 and 2025.
Gherghelas said this might indicate that “loans more often, but for shorter periods of time, perhaps an indication of tactical liquidity games.”
The NFF market depression also harms the loans
Part of the slowdown of the NFT loans is related to the general decline within the NFT market, by which the volumes decreased by 61% to 1.5 billion US dollars in the primary quarter, in comparison with $ 4.1 billion a yr ago.
“With the collateral value of collateral value, the creditness followed naturally,” said Gherghelas. “There are some exceptions that managed to maintain traction or get back, but they were outliers, not enough to lift the sector.”
The log landscape has also narrowed and the variety of energetic NFT credit apps is restricted, with only eight protocols contain a meaningful share.
“The flip-for-liquidity model that worked on bull markets shouldn’t be built for a calmer, risk-averse environment. However, this doesn’t mean that the loans from NFT is ended. It simply relocates the main target,” said Gherghelas.
“Diversifying platforms, application cases change and the collateral preferences change. If the subsequent wave is predicated on advantages, culture and higher design, the NFT credite could find its second wind – one which is built for the duration.”
