NFT lending and borrowing are steadily increasing: Dune Analytics report

NFTs have become a billion dollar market, but they are not limited to digital collectibles. It has also become popular as a loan option for NFT owners who use their NFTs as collateral to secure loans. Dune Analytics has revealed several projects that have facilitated NFT lending and borrowing over the past 12 months. NFTs are backed by loans to access liquidity. A marketplace for NFT loans, NFTfi alone has lent $25.6 million in NFT loans so far and recorded $50 million in NFT loans last month.
Dune Analytics further revealed the following statistics on lending and borrowing in NFTs:
– NFTfi has facilitated $185.4 million of NFT in cumulative loan volume since inception. NFTfi is also partnering with blockchain companies Flow and Animoca Brands.
+ In the last week of May itself, the NFT market recorded 4 loans over $100,000 each.
– Bored Ape Yacht Club which is a collection of 10,000 unique NFTs (BAYC) 7,813 was used for a loan of $100,000 on the NFTfi platform.
– Autoglyph 231, NFTs on OpenSea was used for a $200,000 loan on May 12.
– BAYC 6,276 was used as collateral for a $150,000 loan on May 10, and BAYC 371 NFT helped borrow a $115,000 loan. So far this month, Nftfi has facilitated $25.6 million in NFT loans, according to statistics from Dune Analytics.
– Besides NFTfi, there are other lending platforms like Arcade, Nexo.io, Drops and Flowty.
– NFT Drops loan marketplace which offers instant loans for JPEG, Metaverse and NFT facilitated $6,746,515 in loans.
– Arcade, a decentralized platform providing interoperability of assets across metaverses, raised $17.8 million from investors including Pantera Capital, Franklin Templeton Investments and Protofund.
– Peer-to-peer NFT lending marketplace Flowty, built on the Flow blockchain network, raised $4.5 million in the company’s first investment round from two lead investors and 23 in total in April 2022.
NFTfi offers a wide variety of NFTs and many top-notch digital collectibles including Unstoppable Estates, Axes, Doodles, Sandbox Lands, Other Acts, Hashmasks, Bored Ape Yacht Club and the Mutant Ape Yacht Club (MAYC).
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