Web3-focus report had claim that the “utility” element of non-fungible tokens (NFTs) is the top-most reason for people to keep investing in them, despite the fluctuating crypto market.
When we talk about the usability of an NFT, there are multiple ways like trading it within games for favours or funds or also renting it out to others who may need the NFT that is in your possession.
Lending NFTs in the Web3 world helps both the owner and its renter, where one receives the rent and the other uses the NFT in a compatible metaverse or any Web3 game.
The trend of lending NFTs is pick up pace within the Web3 community.
NFT lending allows NFT holders to avail liquidity without having to sell off their assets.
And some may agree to rent out their NFTs on a daily, weekly, monthly basis to say, gamers who require these NFTs to go ahead, but do not wish to purchase them others may use NFT lending as a method to secure urgent loans.
The practice in the crypto industry gives NFT holders access to capital while having them retain the ownership of the digital collectible.
Borrowers of NFTs also get to skip spending on purchasing NFTs they need only for some time.
This safeguards them from falling prey to financial risks.
The cumulative volume for borrowing against NFTs reportedly hits $1 billion (approx. Rs. 8,195 crore).
NFTfi and BendDAO are among known NFT lending and liquidity providers.
NFT lending could help sceptic but intrigue Indians dabble in the sector safely.
NFT sales reportedly rose by a massive 117% in February 2023.
Till March, the valuation of the global NFT market climbe to its nine-month high since June 2022 to over $2 billion (approx. Rs. 17,200 crore).
