Digital Collectible Owners Continue to Take Loans out Using NFTs as Collateral – While non-fungible token (NFT) collectibles have become popular in recent months, some NFT owners are taking out loans against their tokens. So far this month, Nftfi has processed $25.6 million in NFT loans, while the lending marketplace recorded almost $50 million in NFT loans last month.
In the previous year, NFTs have grown into a multibillion-dollar sector and a significant blockchain technology use case. NFTs are still selling for hundreds of thousands, if not millions, of dollars per digital collectible, despite recent sales slumping due to the crypto market downturn.
NFT owners are also lending their digital treasures for liquidity, in addition to sales and auctions. Since the market’s debut, Nftfi, a decentralized finance (defi) platform, has seen a total loan volume of $185.4 million.
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Four loans totaling more than $100K were recorded in the last week on the peer-to-peer marketplace for NFT collateralized loans. On May 16, BAYC 7,813 was leveraged for a $100K loan, while on May 12, Autoglyph 231 was leveraged for a $200K loan.
On May 10, BAYC 6,276 was utilized for a $150K loan, and the owner of BAYC 371 had gotten a $115K loan for the NFT the day before. According to Dune Analytics’ figures, Nftfi has enabled $25.6 million in NFT loans so far this month. Nftfi also collaborates with blockchain startups Flow and Animoca Brands.
Nftfi isn’t the only NFT lending platform on the market; Arcade, Nexo.io, and Drops are just a few. The Drops loan market has facilitated $6,746,515 in loans, according to statistics. Franklin Templeton Investments, Pantera Capital, Castle Island Ventures, and Protofund were among the investors who contributed $17.8 million to Arcade.
Flowty, a peer-to-peer NFT lending marketplace built on the Flow blockchain network, is another competitor. Flowty raised $4.5 million in its first round of funding from two lead investors and a total of 23 investors.
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Nftfi features a large selection of NFTs as well as a selection of blue-chip digital collectible collections. Unstoppable Domains, ENS names, Doodles, Axies, Sanbox land, Otherdeeds, Bored Ape Yacht Club, Hashmasks, and Mutant Ape Yacht Club are just a few examples (MAYC).
On April 4, 2022, the platform retired its old smart contract (Nftfi V1) and replaced it with a new smart contract called Nftfi V2. Chainsecurity and Halborn audited the platform’s V2 smart contract, according to the web portal.
