First-ever Bitcoin NFT accepted as a 32 ETH loan collateral
The first-ever Bitcoin NFT-backed loan has just been issued through Arcade protocol. The loan is a good sign for ordinal lovers if lenders begin accepting them as collateral.
Bitcoin NFT loan live with 20% APR
Bitcoin network NFTs are gaining popularity owing to the Ordinals project. On Feb. 9, a part of the Ordinal Punks collection, Punk #94, became the highest-sold art token. It sold for 9.5 BTC($215,000).
The collection is even advancing further through the Bitcoin Ordinal Punk loan. Ordinal Punks 58 holders wrapped on ethereum and took out a 32 ETH loan on Arcade. The loan terms were an APR of 20% for 30 days.
Meanwhile, the cumulative fees paid for Ordinals Inscriptions minting are over 100 BTC. Bitcoin’s inscriptions through the Ordinals protocol have exceeded the 500,000 mark and are currently at 544,403. Most of the inscriptions are text-based, 40.8% of the total. Other formats, such as PNG, WEBP, and JPEG, followed, with 32.1%, 14.2%, and 6.7%, respectively.
BTC miners have also received $2.84 million in fees since inscriptions grew.
Bitcoin Inscriptions’ upward trend keeps on
Ordinal Inscriptions are keeping up on an upward trend, especially on the Bitcoin blockchain. Galaxy Digital predicts that Bitcoin-based NFT assets using Ordinal inscription technology could represent a $4.5 billion market come 2025 in a “neutral scenario.” Notably, the estimate came from the Ethereum NFT market size and how much it has grown in the past few years.
The Bitcoin inscriptions keep growing, and miners are gaining massively. The NFTs’ interest may move beyond the forecast, considering Bitcoin is returning to growth.
The project is also expanding even further. Recently, a crypto developer minted the first-ever Litecoin Ordinals after a Bitcoin Ordinals protocol forking successfully. The developer, from the new fork, created a pioneering Litecoin ordinal NFT. Yuga Labs has also announced that it was experimenting with Bitcoin Ordinals.
Meanwhile, there is a debate going on among bitcoin community members. Some are insisting that NFTs are a block space waste by spamming JPEGs. On the other hand, others said art tokens provide additional nodes, hence more network security.
In addition, there are a lot of concerns about the rising network congestion that could cause higher fees and make transactions slower. So far, memory use per block is now at 366 MB, whereby the blockchain rejects any transaction with a value below 3.07 sats/vB.