NFT Financialization: Loans & Fractionalization
Blend’s Lending Boom

Volume: $7B+ in NFT-backed loans since 2023, with 80% concentrated in blue-chip collections (BAYC, CryptoPunks).

Risk: Low default rates (<3%) but overcollateralization (150-200%) limits borrower appeal.

Fractionalization Reality

Liquidity: Major platforms (NFTX, Fractional) average just $30M pooled ETH—too shallow for large exits.

Innovation: ERC-404 tokens boost trading but suffer high volatility (e.g., Pandora’s 70% price swings).

Outlook:
Blend proves NFTs as collateral, while fractionalization needs institutional-grade liquidity to mature.