- NFT financing is nevertheless robust in spite of the overall downward price trend.
On July 24, Dmitri Cherniak collateralized $450,000 worth of NFT collection Ringers with Arcade.XYZ, a non-fungible token (NFT) based lending system.
The loan is set up with a $16,000 principal amount per NFT, and as of right now, 8 wETH, or about $26,000, is the highest price on Opensea for the Ringers collection.
The huge debt coincides with the ongoing decline in floor prices of prominent figures in the generative art movement, like Ringers and Fidenzas. In 2021, Ringers and Fidenzas’ floor prices exceeded 100 ETH; today, they are just 17 ETH and 32 ETH, respectively.
The loan market is still processing a steady volume even with the cooling off of mood and prices surrounding NFTs.
Blend, Gondi, NFTfi, and Arcade, four of the biggest platforms, collectively handle nearly $80 million in outstanding debt. In Q1 2024, the NFT loan market broke all previous records for volume, with over $2 billion in activity.
Blend’s Blast airdrop bonus and the increase in Ordinals lending on Arcade are responsible for Q1’s exceptional lending numbers.
The biggest NFT loan is NFT collector Gmoney’s CryptoPunk 8219, which has a $700,000 principal balance and was collateralized for $1 million on Gondi XYZ. A far cry from the assertions in the mainstream media that your NFTs are, in the end, completely worthless.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
