Decentralized Non-Fungible Token (NFT) platform, NFTfi, has reached record figures in January as NFT lending market continues to grow.
NFTfi hits record-high volumes
NFT lending platform, NFTfi, has reached broken volume records last month as the NFT lending market continues to experience growth. In January, NFTfi hit record figures with a total of 17,936.63 ETH, 4,399 loans, and 907 borrowers and lenders. NFTfi and BendDAO together account for approximately 70% of the NFT lending market.
NFTfi is a peer-to-peer (P2P) NFT lending agreement that allows users to use their NFTs as collateral to borrow wETH, DAI, or USDC from lenders. After repaying the loan, the borrower gets their NFT back, with no auto-liquidations or borrower fees involved.
The recent figures by NFTfi showcase the impressive growth of the NFT lending ecosystem. NFT lending is a new and innovative way for people to borrow and lend NFTs as collateral. With the rise of the NFT market, many individuals have been looking for ways to access liquidity from their NFT holdings, and NFT lending provides a solution for that.
The ability to use NFTs as collateral to borrow other cryptocurrencies provides a new avenue for NFT owners to access liquidity without having to sell their NFTs outright. The growth of NFT lending is a testament to its usefulness for those seeking liquidity and its potential for future growth.
NFT lending ecosystem continues to expand
The growth of the NFT lending ecosystem has been staggering in recent months, with weekly borrow volume increasing from $5.2 million to over $20 million since October 2022. This growth is driven by a number of platforms that are now offering lending services for NFTs, such as the aforementioned NFTfi, BendDAO, X2Y2, and Arcade.
BendDAO has been particularly successful in this area, accounting for 40% of the total volume in the NFT lending ecosystem over the past week. This success can be attributed to the platform’s large holdings of NFTs, including 423 MAYC and 94 Doodles NFTs. Recently, 154 Bored Ape Yacht Club NFTs were deposited to BendDAO as collateral, further strengthening the platform’s NFT holdings.
As previously mentioned NFTfi has also seen significant growth, accounting for 35% of the total volume. X2Y2 and Arcade also saw growth, with 12.9% and 11.5% of the total volume, respectively.
These trends demonstrate the increasing importance of NFTs in the lending market and the growing demand for ways to borrow and lend these unique digital assets. As the ecosystem continues to evolve, it is likely that more platforms and services will emerge to meet this growing demand.
The NFT lending market is still in its early stages, but the growth seen so far is a testament to the potential of NFTs as a lending asset. As more NFTs are created and the ecosystem continues to grow, it is likely that we will see even more growth in the NFT lending market in the coming months and years.