NFT Holders Are Using Digital Collections to Lend Cryptocurrency

• NFT experienced a slight growth rate in its sales.
• Ethereum-based NFT gaming projects increased price by more than 70%.
• DeGods and Y00ts migrating to Ethereum and Polygon, respectively.

In today’s world, most of the nations are moving toward the digital revolution; Non-Fungible Tokens (NFT) play a vital role in supporting artists and creators. At the start of 2023, there was a continuous growth of interest in users for NFTs and crypto assets. The leading liquidity protocol for NFTs NFTfi, reported that digital card holders are using their NFTs to borrow huge amounts of cryptocurrency.

In 2022, crypto users and investors faced the worst bear markets due to the sudden collapse of FTX, Terra, and Celsius Network. The crypto market is off to a good start at the start of 2023 with leading crypto assets Bitcoin and Ethereum. At press time, the global crypto market capitalization is $1.07 trillion, a 0.74% increase over the last day, according to CoinMarketCap.

Currently, the owners of NFT collections are borrowing against their NFTs. In 2021, NFT generated more than $25 billion through sales of art, music, and video games in the Metaverse. OpenSea remained the largest NFT marketplace by trading volume in Jan 2023 ($495 million). In 2022, Bored Ape Yacht Club completed $1.57 billion in sales. In January, Yuga Labs recorded 34.3% of transactions.

At the end of 2022, Polygon experienced a huge growth rate of 124%, increasing to $46 million in NFT trading volume. The launch of Donald Trump NFTs helped the Polygon blockchain. Each NFT is sold at $99. Surprisingly, all the NFTs were sold out like hot dogs within a day.

Last week NFT experienced a slight growth rate in its sales with $232.49 million. Ethereum secured its top position with more than 81% of sales with $188.51 million. The recent announcement of Solana’s top NFT leading projects, DeGods and Y00ts, migrating to Ethereum and Polygon, respectively. It helped both ETH and Polygon platforms to attract more NFT creators. Last week Ethereum-based NFT gaming projects increased its price by more than 70%.

The most popular and successful NFT-based online game yet, Axie Infinity, a monster battlefield game based on the Ethereum mainnet, has recorded 2x profits after a long gap. Ronin, specially designed for Axie Infinity, surged in price from $0.26 to $0.74, more than a 184% increase at the start of the year.

At the start of the year, Axie Infinity was trading at around $6.11. In mid-Jan, the price surged to a high of $13.92. Currently, AXS is trading at $10.85 (at press time), down by 1.09% in the last 24 hours.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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