Real-world assets linking up with non-fungible tokens (NFTs) is one of a few key catalysts that could reignite the waning NFT lending sector, which is suffering from a collapse in volumes and user activity, says blockchain analytics platform DappRadar.

Volumes in the NFT lending market, which allows NFT holders to take out a loan against their token, have dropped 97% from a peak of around $1 billion in January 2024 to $50 million in May, DappRadar analyst Sara Gherghelas said in a May 27 report.

Gherghelas said for NFT lending to “move beyond survival mode,” it needs “new catalysts” to reignite the sector, such as real-world asset NFTs, like tokenized real estate or yield-bearing assets that could unlock more stable, trusted collateral sources.

“So far, 2025 has not delivered a compelling reason for NFT lending to bounce back,” she said. “While the infrastructure is still here and the platforms remain active, activity has slowed across the board.” 

Borrower and leading activity have taken a big hit in the NFT lending sector. Source: DappRadar

“For now, the sector seems to be in a holding pattern, waiting either for market recovery or a new use case to reignite interest.”

Gherghelas added that other catalysts that could rekindle NFT lending were tools that make it easier for NFT holders to borrow against their tokens, and that protocols should create “smart infrastructure” such as undercollateralized loans, credit scores and artificial intelligence risk matching.

The report adds that since January last year, borrower activity has declined by 90% and those willing to lend have shrunk by 78%.

The average NFT loan size has also taken a hit from a peak of $22,000 in 2022 to $4,000 in May, a 71% year-over-year drop.

Gherghelas said this shift “shows that either users are borrowing against lower-value assets or simply becoming more conservative with leverage.”

NFT lending overall trading volume and market activity have dropped off from the all-time highs of past years. Source: DappRadar

The average loan duration is also lower; after hitting an average of roughly 40 days in 2023, it’s been down to 31 days and has held steady throughout 2024 and into 2025.

Gherghelas said this could indicate that “loans are being taken more frequently but for shorter periods, perhaps a sign of more tactical liquidity plays.”

NFT market downturn also hurts lending

Part of the slowdown in NFT lending is connected to the overall NFT market decline, which has seen volumes drop 61% in the first quarter to $1.5 billion compared to $4.1 billion a year ago.

“With collateral value collapsing, the lending activity naturally followed,” Gherghelas said. “There are a few exceptions that managed to hold or regain traction, but they’ve been outliers, not enough to lift the sector.”

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The protocol landscape has also narrowed, and the number of active NFT lending apps is limited, with only eight protocols holding any meaningful share.

“The flip-for-liquidity model that worked during bull markets isn’t built for a quieter, more risk-averse environment. But that doesn’t mean NFT lending is finished; it’s simply shifting focus,” Gherghelas said.

“Platforms are diversifying, use cases are shifting, and collateral preferences are changing. If the next wave builds on utility, culture, and better design, NFT lending might just find its second wind — one built to last.”

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Nasdaq has filed for crypto asset manager 21Shares to list a spot Sui exchange-traded fund (ETF) in the US, initiating the Securities and Exchange Commission’s review process.

The stock market’s May 23 19b-4 filing, which asks the SEC to list the 21Shares SUI ETF, follows 21Shares’ April 30 submission of its S-1 registration statement to the SEC, which asked the regulator to approve trading of the proposed fund.

Both regulatory filings are needed for the Sui (SUI) tracking fund to gi live, with the 19b-4 filing kicking off the SEC’s review process. The agency must decide whether to accept, reject or delay the application within 45 days and it can delay its decision multiple times, for a maximum review period of 240 days.

The SEC must decide on 21Shares’ application by Jan. 18, 2026, at the latest.

Source: Cointelegraph

21Shares proposed BitGo and Coinbase Custody as the custodians to hold SUI on behalf of the trust, however, the filing did not include details on a management fee or ticker.

Canary Capital is the only other asset manager that has submitted 19b-4 and S-1 filings to list a spot Sui ETF, filing the forms on April 8.

21Shares said in its 19b-4 filing that the SUI token powers the Sui network and serves four main purposes: it can be staked to earn rewards, used to pay gas fees, function as a liquid asset for Sui applications and serve as a governance token.

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The Sui ecosystem is largely focused on decentralized applications and has been dubbed a potential Solana killer.

SUI is the 13th-largest cryptocurrency, but its $12.3 billion market cap remains a fraction of Solana (SOL)’s $92 billion market cap, according to CoinGecko.

21Shares aims to add to SUI offerings

21Shares already lists a Sui exchange-traded product in Europe, on the Euronext Paris and Euronext Amsterdam stock exchanges.

Those listings have contributed to SUI-based exchange-traded products having $317.2 million in assets under management (AUM), according to a May 26 report from CoinShares.

Flows into SUI ETPs increased by $2.9 million between May 16 and May 24, and only trails Bitcoin (BTC), Ether (ETH), Solana and XRP (XRP) in terms of net assets.

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A third individual, suspected of being connected to the recent kidnapping, torture and attempted extortion of an Italian tourist in New York City, surrendered to law enforcement on May 27.

33-year-old William Duplessie was taken into custody by the New York Police Department (NYPD) and will be charged with “kidnapping and false imprisonment of an associate,” NYPD Commissioner Jessica Tisch said.

The incident comes amid a string of kidnappings and ransom attempts targeting crypto investors and their loved ones, prompting additional security measures from investors and industry executives.

According to reporting from The New York Times, Duplessie and crypto investor John Woeltz, who was previously arrested by police in connection with the case, both had connections to an NYC-based crypto hedge fund.

Source: Jameson Lopp

Duplessie negotiated his surrender with the NYPD over the course of several days leading up to his arrest.

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Italian tourist kidnapped and drugged in an attempt to steal crypto

Michael Valentino Teofrasto, a 28-year-old Italian tourist in New York City, was kidnapped in Manhattan and held captive for weeks before managing to escape and alert law enforcement authorities.

Teofrasto said the suspects bound him, stole his passport and mobile device, and subjected him to physical beatings, which included being shocked with a Taser.

The victim also said the suspects repeatedly hit him with a firearm and would submerge his feet in the water while tasing him in an attempt to get him to reveal his crypto private keys.

The tourist was reportedly held in a luxury townhome in the SoHo neighborhood of Manhattan and escaped the luxury townhome where he was being held.

Once free, Teofrasto flagged down a police officer and relayed the kidnapping incident to the official.

Following his incident report, NYC police arrested crypto investor John Woeltz and charged the investor with kidnapping for ransom and three other felony counts.

Woeltz is expected to appear in court for an additional hearing on May 28 and is currently being held in custody without bail while awaiting trial.

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