The NFT space globally witnessed massive growth. According to a survey from ResearchAndMarkets, the NFT industries in Africa and the Middle East are predicted to increase by 48.3% yearly to reach $3.42 billion in 2022. According to the report, the NFT sector is anticipated to expand gradually during the projection period, with a 34.3% Compound Annual Growth Rate between 2022 and 2028. Numerous NFT lending platforms were widely used in 2022. However, some are worth looking out for in the new year.
NFT Lending Platforms to watch out for in 2024
Nexo
Compared to NFT lending systems, which establish a marketplace for independent lenders, Nexo handles all loans directly, making it considerably simpler to accept swiftly. In addition, the platform enables borrowing loans into the DAI stablecoin and Wrapped Ethereum (wETH), two distinct currencies. The disadvantage is that Nexo only accepts certain NFTs as collateral, such as Bored Ape Yacht Club or CryptoPunks NFTs. Furthermore, to be eligible for a loan, your NFT’s worth must be at least $500,000.
NFTfi
NFTfi is a new and popular NFT financing platform. Like most of the top NFT lending services, it enables you to get a loan by using your NFT as security. Moreover, you may lend cryptocurrency to borrowers if you’re an investor. The major currencies accepted for transactions are wETH, USDC, and DAI. Borrowers pay a fixed origination fee of 2% of each loan’s principal. The platform’s lending limitations include returns on loans that range from 5 to 60%.
Arcade
Another NFT lending platform to be on the lookout for in 2024 is Arcade. Arcade created the Pawn protocol to run the project. The platforms provide NFT lending and borrowing, with over $3.5 million in loans transacted overall. Arcade doesn’t charge any fees for lending out cryptocurrency if you want to utilize this platform for cryptocurrency farming. In addition to the interest the lender charges, every loan has a 2% origination fee that the borrower must pay.
Any NFT is presently supported as collateral by Arcade. No precise collections or minimum values are needed to be used as collateral. The major currencies accepted for transactions are wETH, USDC, and DAI. Borrowers pay a fixed origination fee of 2% of each loan’s principal.
Drops
Drops is a marketplace-based NFT loan service similar to NFTfi and Arcade, although it runs slightly differently. Drops uses several NFT marketplaces, unlike other NFT lending platforms, which only have one marketplace for loan offers. Each marketplace, including Bored Ape Yacht Club, CryptoPunks, and others, focuses on a specific NFT collection.
This implies that if you want to borrow money against your NFT, only lenders interested in your particular NFT will give you a loan. Finding NFTs you’re interested in acquiring in the event the borrower fails is simple for lenders.
Conclusion
Arcade, NFTfi, Nexo, and Drops are NFT lending platforms that we can all expect to become more popular in 2024. So, if you are interested in NFT lending protocols, you can consider trying at least one of these platforms.
