The non-fungible token market has come a long way in the last few years. But nothing epitomizes this maturity more than his burgeoning NFT lending marketplace. Several projects have taken on the task of building the infrastructure to unlock liquidity for the highly illiquid NFTs. As a result, we now have over $1 billion in borrowings for NFT Collectibles.
This figure comes from eight NFT liquidity providers. NFTfi As of April 13, the company has borrowed over $392 million on its platform, according to Dune Analytics.it follows closely Ben Dao Second place with over $300 million, Paraspace It comes in third with just over $241 million. The latter, a relatively new entrant to the NFT liquidity market, promises to shake the establishment. Incredibly, the number of borrowers has also increased over the past few months and now totals over 40,000.
NFT Borrowing Will Grow Huge Over Time
Still, that number is expected to grow exponentially as more NFT holders become aware of the existence of these platforms. This is a sentiment shared by Andrej Skraba, CMO of NFTfi. Speaking to the press, he said: “Currently, many digital asset owners are unaware of the existence of credit markets or unfamiliar with the various types of lending protocols available.”
Therefore, the industry has a lot of work to do to educate and raise awareness of the market. “This increased understanding will pave the way for new NFT areas and integration opportunities.”
According to Derrick Nguyen, marketing and community lead at JPEG’d, another liquidity platform, the desire to unlock the value of digital collectibles without selling them has fueled the growing interest in NFT lending protocols. Main factor. He goes on to add that lower volatility in the market has made it viable for lenders to borrow against collections.
Overall, the process is similar to borrowing against cryptocurrencies like Bitcoin, but in this case using NFTs. Some platforms allow you to borrow up to 60% of the value of your NFTs. Interestingly, some of these protocols also allow users to buy her NFTs with credits. Making highly valuable NFTs accessible to the average collector.
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*All investment/financial opinions expressed by NFT PLAZA are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Basil is an avid fan of blockchain technology and all its innovations, and is passionate about sharing this story with his audience. He has spent over five years in the crypto space, specializing in research and creating his Web3 content for various media outlets around the world.
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