Is 2022 the end of NFTs and crypto? One year ago, people were still astonished by the $69 million sale of Beeple and the limitless potential of NFTs. People were buying into the hype of Bored Ape Yacht Club, Crypto Punks, VeeFriends, and more. However, the entire ecosystem changed, and the industry was silent. Nonfungible, a reputable NFT data resource site, posted a Q2 NFT Market report.
In comparison to Q1 of 2022, Q2 was an absolute massacre. All primary metrics are down by 25%, yet the prices of NFTs only dropped by 6% (Nonfungible). The worst news is that Opensea, an NFT trading platform, is now down 99% in trading volume compared to its May statistics (Fortune). In a mere four months, the market has turned for the worst and may take some time to recover to its previous highs.
For more info on NFT’s Q2 2022 performance, check out our thread:
So is this the end of NFTs and cryptos? Not so quick. Despite the terrible market circumstances, the general interest in NFT is trending much higher than it was a year ago. According to Google Trends, the interests are still alive despite not seeing their previous highs.
While prices may not be as high as before, it is clear that the industry is still trending forwards, and many new utilities and functionalities of NFTs are coming to life.
A New Frontier for NFTs
As the industry moves away from hype profile pictures, actual use cases of NFTs are slowly coming to life. Platforms like NFTfi allow users to lend and borrow NFTs like DeFi. NFTfi is the intersection of DeFi and NFTs, the perfect marriage where users can further explore the potential of their NFTs apart from being profile pictures on Twitter.
- NFTfi (Lending and Borrowing)
NFTfi is an NFT borrowing and lending platform. It allows borrowers to receive rewards without needing to sell their NFTs and allows lenders to accept returns or an NFT at a reasonable price. In addition, the P2P marketplace allows users to customize and optimize their NFT loan parameters.
How to lend:
- Go to NFTfi Lend and connect your wallet
- Click on a “Loan” listing that is interesting to you
- Click on “Make Offer” and accept the terms or request your terms (amount, repayment, schedule, etc.)
- Next, click on “rant” and use your wallet to approve NFTfi to use your funds (1-time transaction)
- Finalize your offer with your wallet, and you have now placed an order. The other party will have seven days to decide on your offer.
- If you wish to learn more about some tactics, take a peek here.
How to borrow:
- Go to NFTfi Borrow and connect your wallet
- You can use your filter to look for NFTs in the wallet that you hope to put and use as collateral
- Once you’ve selected your NFT, decide on your loan amount, loan schedule, interest rate, and more.
- Simply press the “List as Collateral” button to finish the listing
- You’ve now listed your NFT. Just wait patiently for a lender to accept your terms!
NFTfi has partnered with reputable corporations like Animoca Brands and Flow and has also been invested by funds like Fenbushi Capital, Digital Currency Group, 1kx, and more.
- BendDAO (P2P Lending & Borrowing)
BendDAO is another NFT borrowing and lending protocol that uses a peer-to-pool-based liquidity protocol. Put simply, holders can borrow ETH via lending pools using their NFTs as collateral, while depositors can provide ETH liquidity to earn interest.
How to lend:
- Go to BendDAO Lend and connect your wallet
- Sign and confirm the transaction to verify your address
- Go to the “Liquidity” tab and click “Deposit ETH.”
- Input # of ET to deposit and press “Deposit.”
- Complete the transaction by signing on your wallet and waiting and earning yields!
How to borrow:
- Go to BendDAO Borrow and connect your wallet
- As of right now, BendDAO accepts Azuki, BAYC, CloneX, CryptoPunks, Doodles, and MAYC – if you have the following NFTs proceed to “Deposit.”
- Next, approve the transactions – one is for debt token, and the other is for approving the NFT.
- Simply input your desired borrow amount and press “Borrow ETH.”
- You will pay down the loan as needed via BendDAO’s borrowing dashboard.
- reNFT (Renting and Lending)
reNFT allows you to rent and lend NFTs with ease. The multi-chain NFT rental protocol and platform provide collateral-free renting, lending, and reward sharing. Targeted toward developers and project owners, the platform makes it easy for Web3 builders to access NFTs.
How to rent:
- To rent an NFT on reNFT, go to the website
- After, connect your wallet and sign the transaction to verify your address
- Browse the market and see which NFT you want to rent – you can choose between collateralized and collateral-free
- Having chosen the NFT that you want to rent, simply input the duration you wish to rent
- Now click on “Rent Now” and confirm the transaction, BAM. You now have successfully rented an NFT!
How to lend:
- To lend your NFT, go to reNFT
- You must first connect your wallet; afterward, click on your wallet, and in the drop-down, you will see “Portfolio.”
- You will then see “My Wallet” now, you can choose which NFT you wish to lend out.
- You can choose the payment token, collateral, price, and rent duration for your NFT.
- You will need to sign the transaction for your offer to go through.
Not to mention, reNFT is backed by some big names, including but not limited to Opensea, Gemini, Animoca Brands, Sandbox, and more!
The Future Looks Bright
While NFTs are nowhere near as popular as before, it seems that big corporations have caught onto the trend and are starting to accept the future of NFTs. A few examples of this include:
- Disney announcing its newest job posting of Web3 roles
- Apple wants 30% of commissions off its marketplace
- Epic Games and its first NFT game
Not to mention, being able to flex your NFT on CT is cool, but who doesn’t love some extra liquidity? Platforms like the ones mentioned above do just that, so instead of letting your profiles sit and catch dust on Opensea or Twitter, NFT lending and borrowing is setting up a new whole landscape apart from just simple hype.