The current amount of NFT borrowing and lending, or NFTFi loans, has exceeded $430 million across 43,521 borrowers, according to a report by Paraspace and BitKeep. The most popular NFT collections, such as Wrapped CryptoPunks, Bored Ape Yacht Club, and Mutant Ape Yacht Club, made up the majority of collaterals. Despite growth, liquidity concerns remain in the sector due to limited user numbers, difficulties in pricing, and high NFT prices. Paraspace NFT developers attribute their success to rules allowing only the most-established and highly liquid, or blue-chip NFTs, to be pledged as collateral.
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