As the Non-Fungible Token (NFT) market continues to soar, so too does NFT lending. According to recent data, over 18k ETH was borrowed in January alone as more and more investors are turning towards this new asset class for potential returns.
The growth of NFTs has been nothing short of astounding since their inception a few years ago. What began as a niche concept is now rapidly becoming mainstream with major institutions like Morgan Stanley investing in them and platforms such as Ethereum allowing anyone to create their own tokens on its network. This surge in popularity has led many investors looking for alternative investments that offer higher yields than traditional markets can provide – leading them straight into the arms of NFT lending platforms such as YouHodler and BlockFi.
These companies allow users to borrow against their crypto assets using an innovative form of collateralized debt called “smart contracts” which enable lenders to set specific terms regarding repayment schedules, interest rates etc., all without any intervention from third parties or intermediaries – meaning transactions are fast, secure and transparent for both parties involved!
The benefits don’t stop there either; by leveraging these smart contracts borrowers can also take advantage of features like automated repayments (meaning they won’t miss payments), flexible loan durations ranging from 1-36 months depending on needs/preferences plus much more – making it easier than ever before get access quick capital while still maintaining full control over one’s finances!
All this combined with low interest rates compared other traditional forms credit have made it increasingly attractive option those who want diversify portfolios but don’t want risk associated stocks & bonds – thus explaining why we’ve seen an influx demand recently resulting record high levels borrowing activity during month January 2021 alone!
As we continue move forward into 2021 expect see even further growth sector due increasing investor confidence widespread adoption across globe; making perfect time start exploring opportunities available within space if you haven’t already done so…