Binance NFT has rolled out a new feature that enables users to acquire cryptocurrencies using popular NFTs like Azuki, Bored Ape Yacht Club (BAYC) along with Mutant Ape Yacht Club (MAYC) and some Doodles collections. The service, called Binance NFT Loan, will mainly focus on Ethereum loans, while offering appealing interest rates, immediate liquidity, no gas fees, and liquidity protection.
New Binance NFT Features
Binance, the popular cryptocurrency exchange, has unveiled a new feature that offers DeFi benefits to its NFT community. This tool is designed to provide immediate liquidity to NFT holders by allowing them to use their non-fungible tokens as collateral to borrow cryptocurrency.
With this tool, users can get liquidity without having to sell their assets, as they can leverage their NFTs. The lending feature is a recent addition to the Binance NFT Marketplace, which was launched in June 2021. The marketplace allows users to buy, sell, and trade NFTs. The platform has experienced remarkable growth in recent months, with the total trading volume reaching $1 billion in April 2023.
Binance’s move to offer NFT lending services is in line with the rapidly expanding NFT market, which has experienced explosive growth in recent years. In the first quarter of 2022 alone, the NFT sector recorded sales of $2.5 billion, making it a hotbed of activity attracting investors from various industries, including celebrities, artists, and sports stars.
Blue Also in the NFT Race
The introduction of the lending feature occurred shortly after Blur, a leading NFT platform, launched the Blend lending protocol a few weeks ago. This P2P protocol enables borrowers to gain exposure to blue-chip assets with smaller down payments. Additionally, they have the power to negotiate specific terms with lenders, such as acceptable collateral and interest rates.
Blend recorded a trading volume of 6,407 ETH within the first 24 hours of its launch. Borrowers displayed notable enthusiasm in the Azuki, Cryptopunks, and Milady NFT collections. Blend’s asset acquisition process was compared to that of purchasing a house, where investors can make a down payment and pay off the remaining debt through mortgage payments.