The current volume of NFT lending and borrowing has topped $430 million among 43,521 borrowers, as per a study recently released by NFT money market set-ups multichain pocket BitKeep and the blue-chip security aid, Paraspace. The most widely used NFT collections, including Wrapped CryptoPunks, Mutant AYC, as well as Bored AYC, made up the majority of the collateral. According to BitKeep and Paraspace researchers, NFTFi increased the number of outstanding loans by $25 million between January and March. Another factor was the creation of a virtual collectible lending regulation by a marketplace of NFT, Blur, which, under the leadership of Taiwanese celeb Machi BB, reached $16M in loans a day after its start.
The creation of BO, which increased overall NFT market exchange volume to above $1.5B around March but decreased to above $330M around May, provided the main impetus. Despite this expansion, however, researchers from BitKeep and Paraspace cautioned that liquidity issues continue to plague the market: “NFT trading’s lack of stability is primarily driven by low user numbers, challenging pricing, and expensive NFT costs.
The Price Of Blue-Chip NFTs Have Been Decided At A Whooping Amount of $11,000-$120,000
The creators of the Blue-Chip security aid Paraspace NFT highlighted that despite amassing NFT loans totaling more than $280M, the set-up only had about 16 liquidations of NFT with no terrible accounts since it started operating last year. The protocol’s creators claim that regulations that only let the most well-known and liquid NFTs or blue chip, be guaranteed as collateral are the reason for the protocol’s success. The usual price range for the blue chip is around $11,000 and $120,000, making the entrance barrier sometimes quite high.
However, developers at blue-chip security aid BitKeep and Paraspace issued a warning, stating that the recent NFTs are fresh in the market “lacking old data as well as valuation methods for analyses which is recognized universally, resulting in difficulties of pricing.”