More BAYC NFTs In BendDAO Loans Than Ever Before, Should You Be Worried?

NFTs News
croelan
6 January 2023
5 minutes read

Record High Loans

According to recent data from Twitter user @punk9059 also known as NFTstatistics, Bored Ape NFTs have been involved in more BendDAO loans than ever before, marking for new all-time-high records.

(tweet: https://twitter.com/punk9059/status/1610783384170823680?s=20 )

The data, compiled from that, showed 351 BAYC NFTs in BendDAO loans in the week leading up to December 27th as well as a record high of 81 loans on January 3rd alone. According to data from Dune, December is also recorded as the month with the highest levels of NFT borrow volumes since April.

Aside from BendDAO, other NFT lending platforms also saw a massive increase of BAYC NFTs being lent these past few weeks. As of January 4th, a reported 60,000 ETH or $75 million worth of BAYC collateral is said to be tied to both BendDAO and NFTfi.

(tweet: https://twitter.com/wardaddycapital/status/1610686849034457089?s=20&t=c4Ny5pMpqVqauA65N2EAJA )

Worries Of Liquidation

These record high numbers have understandably caused some concern for members of the BAYC community. Just back in August 2022, BAYC NFTs saw its price drop considerably as FUD was spread around the community after rumours that hundreds of Bored Apes tied to the platform were going to be mass liquidated.

At the time, an estimated 272 Bored Apes, which represented almost 3% of the entire BAYC collection, were said to be tied to the platform. The crypto bear market had caused many of these BAYC NFT owners to not be able to pay the platform back their loans on time, risking their millions of dollars worth of Bored Ape NFTs to be liquidated by the platform. This in turn caused BAYC’s floor to drop to a considerably low price.

It’s because of this that many in the community are wary about the high numbers of BAYC NFTs being used as collateral in BendDAO and other similar platforms.

Others in the community assure however, that despite the FUD surrounding these large numbers of BAYC BendDAO loans, the Bored Ape collection has always been able to pick its floor price back up and recover fairly quickly.

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