Non-fungible token (NFT), collectibles, have been a hot commodity in the past 12 months. However, many NFT owners are now taking out loans to finance their NFTs. Nftfi, a project, has already facilitated $25.6 Million in NFT loans. Last month, the lending market recorded almost $50,000,000 in NFT loans.
NFT lending and borrowing continue to grow
NFTs, which have grown to be a multi-billion dollar industry in the last year, are a very popular use case for blockchain technology. Despite the recent dip in sales due to the crypto market crash, NFTs still sell for hundreds of thousands or even millions of dollars per digital collectible. NFT owners can also lend their digital collectibles to others for liquidity access. A decentralized finance platform called Nftfi, for example, has seen $185.4 Million in cumulative loan volume over the years.
The peer-to-peer market for NFT collateralized loan loans has recorded four loans totaling more than $100K in the past week. Bored Ape Yacht Club (7,813) was used to secure a $100K loan. Autoglyph 231 was used to leverage a $200K loan. BAYC 627 was used to fund a $150K loan, and the BAYC371 owner was able obtain a $115K loan the day before. According to statistics by Dune Analytics, Nftfi has so far facilitated $25.6 Million in NFT loans. Nftfi also partners with the blockchain companies Flow, and Animoca brands.
NFT Lending Competition
Nftfi does not represent the only NFT lending platform. There are many others, such as Arcade and Nexo.io. Statistics show that Drops has helped to facilitate $6,746,515 worth of lending. Pantera Capital, Franklin Templeton Investments and Castle Island Ventures have all invested $17.8 millions in Arcade. The peer-to-peer NFT lending platform Flowty is another competitor. It is built on the Flow Blockchain network. Flowty received $4.5 million from two investors, and 23 total, in its first round of investment.
Nftfi offers a large selection of NFTs as well as a variety of digital collectibles from blue-chip companies. There are ENS names and Unstoppable Domains. Axies, Doodles. Sanbox land, Otherdeeds. Hashmasks. Bored Ape Yacht Club. Mutant Ape Yacht Club. The platform recently launched NftfiV2, a new smart contract, after it had phased out NftfiV1 (its old smart contract). According to the portal, Chainsecurity and Halborn reviewed the platform’s V2 smart contract.
