Binance Marketplace Launches Innovative NFT Loan Service
Binance Marketplace is set to launch a new service, allowing users to secure Ether loans using their NFTs as collateral, thus competing with Blend, the dominant player in the NFT loans market.
Binance Marketplace, the NFT trading segment ofcryptocurrency exchange Binance, is initiating a fresh service this Friday. This novel offering allows users to leverage their NFTs as collateral to secure Ether loans, positioning itself against Blend - Blur's trading protocol which commands an 82% share of the NFT lending market since its May 2 debut.
Binance's NFT Loan service, as announced, permits users to harness more flexibility on their NFT assets and safeguard their long-term value without having to liquidate them. At inception, the service will solely facilitate Ethereum loans, supporting NFT collateral from collections like Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles. Future expansion of service options is on Binance's agenda.
To claim the title of the top NFT loan service, Binance will square off against Blur, the global leader in NFT trading. Blend, Blur's peer-to-peer NFT lending protocol, claimed an impressive US$308 million in loan volume within 22 days post-launch, as per DappRadar.
Brendan Humphries, of NFT lending platform Pine Protocol, attests to the allure of Blend's continuous loans for traders looking for additional leverage. He further emphasizes that offerings like Blend foster NFT market maturity, enhance market efficiency, and pique the interest of newcomers with advanced products and tools.