ArcadeXYZ Collateralizes $450,000 of Ringers NFTs

On July 24, Arcade.XYZ, a non-fungible token (NFT) lending protocol, collateralized $450,000 worth of Ringers NFTs, a collection by Dmitri Cherniak. This loan is structured with a principal of $16,000 per NFT. The current highest bid for Ringers on OpenSea is 8 wETH, approximately $26,000.

The transaction highlights the continued activity in the NFT lending market despite a downturn in the generative art scene. Popular collections like Ringers and Fidenzas, which had floor prices exceeding 100 ETH in 2021, have seen significant declines, now sitting at 17 ETH and 32 ETH, respectively.

Despite the drop in NFT prices, the lending market remains robust. Major platforms such as Blend, Gondi, NFTfi, and Arcade process over $80 million in outstanding debt combined. The market broke volume records in Q1 2024, surpassing $2 billion, driven by Blend’s Blast airdrop incentive and the rise of Ordinals lending on Arcade.

The largest NFT loan to date is held by NFT collector Gmoney’s CryptoPunk 8219, collateralized for $1 million on Gondi XYZ, with a current principal of $700,000. This illustrates the resilience and continued value of certain NFTs, contradicting mainstream media claims that NFTs are worthless.

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