Stripe is testing a new US dollar-backed stablecoin product for businesses outside the U.S., U.K., and Europe, aiming to expand the dollar's global footprint.

Daily top performer — Pudgy Penguins (PENGU)

S&P 500 futures dipped as over 180 S&P companies prepare to report earnings this week, following a 4.59% gain last week amid easing US-China trade tensions. Gold prices dipped to around $3,310 as easing US-China trade tensions reduced safe-haven demand, though recession fears may limit further losses ahead of key US economic data releases. Fed hawkishness may cap gains. CoinDesk Indices, which tracks the broader crypto market, fell 0.72% in the past 24 hours, while Bitcoin and Ether dropped 0.19% and 1.07%, respectively. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is PENGU, rising by 27.5%, following Pudgy Penguins' recent expansion into multiple industries and their celebration of World Penguin Day.

Pudgy Penguins (PENGU), launched in July 2021, is a popular NFT collection known for its cute artwork. It has expanded into physical products like toys, generating over $10 million in sales, and the collection now holds a market cap of over $1.19 billion. Pudgy Penguins and $PENGU were recently 

 as a fitspo in Wisdom Kaye's content, marking a major milestone for their influence across industries. Additionally, last Saturday, the brand celebrated 

, highlighting its continued growth and impact beyond the NFT space. This showcases Pudgy Penguins' expanding presence and reach in multiple sectors.

Check out the latest prices, charts, and data of 

 a new US dollar-backed stablecoin product for businesses outside the U.S., U.K., and Europe, aiming to expand the dollar's global footprint. This follows Stripe's acquisition of Bridge, a stablecoin payment network, which competes with the SWIFT system. Stripe has a history with crypto and recently introduced stablecoin payments in over 70 countries. The company sees this new product as a decade-long ambition, with the stablecoin market growing significantly in 2025.

BTC spot ETFs saw $3.06B of net inflows for the week ending 25 April 2025, with $2.97B from non-GBTC products and $94M from GBTC. Since inception, ETFs have accumulated $38.4B in net flows, with non-GBTC products contributing $61.1B and GBTC seeing $22.7B of outflows.

GiveRep, a decentralized reputation protocol on Sui, has 

 a points program where users can earn Reputation Points by tweeting about GiveRep and its Loyalty projects to qualify for an upcoming airdrop. A minimum of 100 X (Twitter) followers is required, and participants may also earn bonus airdrops from partner projects.

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Stripe launches testing for global stablecoin payments after Bridge acquisition

Initia is a blockchain ecosystem that unifies Layer 1 security with customizable Layer 2 rollups through its Interwoven Stack architecture. Learn more here.

 ecosystem forces developers to choose between security and customization, while fragmenting liquidity across isolated chains. Enter Initia (INIT), a groundbreaking protocol that reimagines blockchain architecture by seamlessly integrating 

This article examines Initia's Interwoven Stack architecture, its innovative economic features and the INIT token's utility and distribution, and considers whether this ambitious ecosystem redesign represents a promising investment opportunity following its recent mainnet launch.

 is a blockchain ecosystem that unifies Layer 1 security with customizable Layer 2 rollups through its Interwoven Stack architecture, enabling developers to build specialized application chains without sacrificing interoperability or liquidity or requiring deep infrastructure expertise.

Initia emerged in 2022 when Stanford Liu and Ezaan "Zon" Mangalji left Terraform Labs to tackle blockchain's fragmentation challenges. They later added ecosystem lead OmniscientAsian from Sino Global Capital to help create a more streamlined blockchain infrastructure.

The project quickly gained investor backing, starting with Binance Labs' pre-seed funding in October 2023. This was followed by a $7.5 million seed round led by Delphi Digital and Hack VC, then a $2.5 million community round and a $14 million Series A that valued Initia at $350 million by late 2024.

Initia aims to eliminate the traditional security/customization trade-off in blockchain by creating a unified ecosystem that allows both to coexist. By establishing a central hub for all rollups, the project combines the advantages of monolithic security with the flexibility of modularity, thereby eliminating the fragmentation that currently plagues blockchain systems.

The platform's integrated stack simplifies blockchain development with pre-built solutions that work together seamlessly. Users benefit from Initia's Universal Accounts system, which provides a consistent experience across all connected chains, eliminating the need for multiple wallets or managing different tokens for gas fees.

By introducing economic alignment mechanisms such as the 

, Initia creates an environment in which developers can focus solely on innovation in their applications. This shift away from infrastructure concerns toward product development aims to enhance capital efficiency and drive broader adoption of blockchain.

Initia fuses Layer 1 (L1) and Layer 2 (L2) technologies into a unified architecture with three distinct components. The foundation is Initia L1, built on Cosmos SDK, which functions as the orchestration layer. This base provides security, governance and interoperability.

Above this foundation, Interwoven Rollups (Minitias) provide developers with customizable Layer 2 environments, allowing them to select their preferred virtual machine (

, Move or Wasm), define unique gas token systems and implement specialized transaction ordering mechanisms. 

Binding everything together is the Interwoven Stack, a comprehensive framework that provides all necessary tools for building and deploying rollups without requiring developers to source and integrate disparate components.

The system leverages optimistic rollups through the OPinit Stack to achieve remarkable transaction speeds (up to 10,000 

) while maintaining security. Transactions processed via L2 rollups are submitted to Initia’s L1 for finalization, with data availability secured through 

Initia provides the following core features that work together to simplify development and unify the blockchain ecosystem.

Initia L1 serves as the foundational layer and central coordination hub for the entire ecosystem. Built on the Cosmos SDK with CometBFT and MoveVM, it provides essential services, including network security, governance mechanisms and liquidity solutions through InitiaDEX.

 (also known as Minitias) are flexible Layer 2 blockchains built on top of Initia L1. These rollups rely on the orchestration layer for security and data settlement, operating without native 

 while enabling advanced rollup functionalities.

Developers can customize their rollups by selecting from multiple virtual machines and defining their own gas token and fee structure. This flexibility enables application-specific optimizations and economic models, at the same time maintaining seamless interoperability within the broader Initia ecosystem.

The Interwoven Stack is Initia's comprehensive, all-in-one solution, designed to empower developers in building and deploying rollups with unmatched ease. Instead of requiring developers to research and piece together numerous components — such as wallets, explorers and 

 — the Stack provides everything needed right out of the box.

At the core of this framework is OPinit Stack, designed exclusively for optimistic rollups within the Cosmos ecosystem. It includes mechanisms for fraudproofs and rollback capabilities and supports multiple virtual machines, which allows developers to focus solely on building their applications, rather than configuring complex infrastructure.

The Vested Interest Program (VIP) is Initia's novel incentive alignment mechanism that’s designed to address common issues in multi-rollup ecosystems. It addresses the misalignment of incentives for high-activity 

 (DApps), the economic underutilization of the native token and the inefficient distribution of protocol-level incentives.

VIP programmatically rewards valuable economic activities by allocating INIT tokens to rollups that create innovative applications, and to users who perform beneficial actions. This approach ensures that rollup teams, users and token holders all share aligned interests in the ecosystem's long-term success.

 (DEX) built on the Initia L1, functioning as the central liquidity hub for all Interwoven Rollups. It features Balancer-style weighted pools for diverse asset pairs, and 

 pools for assets with closely correlated prices, ensuring an optimal trading experience.

Enshrined Liquidity is Initia's solution to the traditional dilemma in 

 (PoS) systems, whereby token holders must choose between either staking for security or providing liquidity. It allows governance-whitelisted InitiaDEX liquidity positions (INIT-TOKEN pairs) to function as staking assets alongside the native INIT token.

Users can earn both staking rewards and trading fees from a single position, dramatically improving capital efficiency. To qualify, LP tokens must include INIT as part of the pair (with at least 50% weight for Balancer pools) and receive 

 approval, which also determines reward weight distribution among all whitelisted tokens.

Minitswap eliminates the days-long waiting periods typically required by optimistic bridges when moving assets from rollups to Layer 1s. Users can instantly swap their rollup tokens for L1 assets through liquid trading pairs, creating a frictionless experience for asset transfers throughout the Initia ecosystem.

 offers a unified interface for managing assets across multiple rollups, thereby facilitating cross-chain transfers and accessing DApps. By abstracting multichain complexity into a single interface, users can navigate the entire Initia ecosystem without confronting technical barriers or fragmented experiences.

Initia's bridge technology enables secure token transfers between Initia L1 and rollups using an optimistic bridge model. The OPinit Bridge leverages Cosmos SDK modules, and operates through two key components that work in tandem to ensure system integrity.

The Executor handles token movements, output submissions and data relay, while the Challenger monitors for invalid proposals and provides security oversight. This balanced architecture delivers verifiable cross-chain communication that maintains the integrity of both L1 and L2 chains while enabling reliable asset transfers throughout the Initia ecosystem.

Initia reached a major milestone with its successful mainnet launch on Apr 24, 2025. Before then, the project had completed several critical developments, including the MiniEVM and MiniMove frameworks, the deployment of InitiaDEX and the implementation of the innovative Vested Interest Program.

The immediate post-launch phase is focusing on expanding the ecosystem by onboarding strategic partner projects across 

 and enterprise sectors. This expansion demonstrates Initia's versatility as it builds a network of interconnected Interwoven Rollups that leverage the platform's unified infrastructure.

The INIT airdrop will distribute 50 million tokens, representing 5% of the total supply, to early supporters and community members. This allocation is strategically divided across three main categories: testnet participants (89.46%), social contributors (6.04%) and Interwoven Stack partners (4.50%).

The largest portion (44.7 million INIT) is being designated for the 194,294 users who participated in Initia's public testnet campaigns, particularly those who engaged with interactive 

 activities. Additional allocations target users from partner ecosystems, including LayerZero, IBC and milkTIA holders.

Following the mainnet launch on Apr 24, 2025, eligible participants will have a 30-day claim window to secure their tokens. This airdrop serves as both a community-building initiative and a strategic token distribution to those most likely to contribute to the ecosystem's growth.

INIT is the native token of the Initia ecosystem, with a fixed total supply of 1 billion. Initial circulating supply at launch was 148.75 million INIT, representing 14.88% of the total supply. The token’s distribution is strategically designed to ensure long-term sustainability and broad community engagement.

INIT enables staking to secure the network, powers governance decisions for protocol changes, facilitates cross-rollup operations between different Minitias and provides liquidity through InitiaDEX. This utility-driven model ties INIT's value directly to ecosystem activity and adoption.

Looking to trade Initia tokens? Bybit now offers the INITUSDT Perpetual contract following the recent mainnet launch. To get started, you'll need to create a Bybit account, fund it with cryptocurrency and navigate to the 

While Initia represents a groundbreaking approach to blockchain scalability through its interwoven architecture and unified liquidity model, investors must carefully weigh its significant growth potential against relevant risk factors.

Initia shows promising potential with its comprehensive ecosystem approach and significant financial backing. In addition, growing demand for scalable blockchain infrastructure that doesn't sacrifice security or customization provides a favorable market environment. However, potential investors should 

 and consider their individual risk tolerance.

Initia revolutionizes blockchain architecture by creating a multichain environment in which thousands of appchains can coexist harmoniously through modularity and orchestration. With established financial backing and over 16 appchains already onboarded at mainnet launch, Initia could transform the way blockchain applications are built, deployed and interconnected.

Intermediate

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Initia (INIT): The Interwoven Stack behind scalable rollups

Apr 28, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — US-Sino trade conflicts cool down

China is considering suspending its 125% tariff on certain US imports, including medical equipment and industrial chemicals like ethane, due to the economic impact of the trade war. Discussions are also underway to waive tariffs on aircraft leases, which are financially burdensome for airlines.

This potential move has boosted investor optimism, with Asian shares rising and the yuan recovering losses. Analysts view this as a step toward de-escalation, although significant differences between the US and China remain.

The proposed exemptions align with recent US tariff exclusions on electronics, highlighting the intertwined nature of the two economies. Chinese companies reliant on US goods, such as advanced medical equipment and ethane, have reported some shipments arriving without tariffs.

While the list of potential exemptions is still being finalized, authorities have requested companies submit customs codes for necessary goods. Reports suggest China may also waive tariffs on at least eight semiconductor-related products, excluding memory chips, which could impact companies such as Micron Technology.

Overall, while investor interest grows, relations between the two nations still face challenges, with China demanding the US revoke unilateral tariffs before resuming trade talks.

Traders have heavily invested in Cantor Equity Partners Inc, a blank-check company merging with Twenty One Capital Inc., which is backed by Tether, Bitfinex and SoftBank. Since the April 22 merger announcement, Cantor's stock has surged 197%, closing at $31.50 on Friday.

The merger includes a convertible debt offering, potentially leading to a market capitalization of about $12 billion that would far exceed the estimated $4 billion value of the Bitcoin it’s expected to hold. This would reflect strong demand for crypto-related investments.

Analysts note that investing in such vehicles is akin to betting on Bitcoin's growth. Public special-purpose acquisition company (SPAC) shareholders are projected to own 2.7% of the new company, while major stakeholders like Tether and SoftBank will have substantial shares. Overall, the market is optimistic about this collaboration in the digital asset space.

Advanced

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Weekly Institutional Insights: Trade conflicts cool down as crypto SPAC sees popularity

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

At the start of the week, Bitcoin showed signs of decoupling from US equities. However, US president Trump's positive remarks about the US-China trade war (which had included a 145% tariff on Chinese goods) triggered a relief rally across markets. As a result, BTC has resumed moving up with US equities. 

This rally has led to a rise in short-tenor implied volatility and a recovery in BTC’s put-call skew, indicating that traders are seeking upside exposure.

Please check out the report’s highlights.

Perp open interest rises across the board

Perpetual open interest increased significantly this week across various tokens, especially ETH. Perpetual trading volumes also rose. Notably, Ap 7, 2025 recorded the highest trade volume of the month, following Trump's comment, "Forget markets for a second, we have all the advantages."

BTC option open interest shows a mixed picture; put-call skew in short tenor sends positive signals

President Trump’s recent willingness to negotiate a trade deal with China’s President Xi triggered a relief rally across asset classes, including crypto. Bitcoin had already risen 7% since Apr 21, 2025, prior to Trump's comments. Despite this rally, open interest in puts has outpaced calls, with options volume remaining relatively balanced. 

It's unclear if the demand for puts reflects a hedge against downside risks, or a bet against the upward movement. Meanwhile, perpetual funding rates are providing limited insight into sentiment. However, the recovery of the put-call skew at short tenors indicates that traders are seeking upside exposure to the rally — and are willing to pay for it.

ETH unexpectedly outperforms BTC in this relief rally

ETH's response to the recent crypto market recovery has diverged from previous trends: it outperformed BTC in spot prices, a rarity in past rallies, and open interest in calls exceeds that in puts — opposite to BTC's trend. In addition, ETH call open interest is nearly double that of puts, with calls dominating options volumes. This suggests traders anticipate ETH will reduce its significant underperformance against both BTC and other “ETH killers” like SUI and SOL. Additionally, the spot rally has led to another term structure inversion for ETH.

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Bybit X Block Scholes crypto derivatives analytics report (Apr 24, 2025): Put-call skew recovers at short tenors, showing reviving sentiment

Valuable NFTs can be used as collateral for acquiring loans. In this guide, we’re going to explore how NFT loans work, and take a look at some existing platforms that have made strides. Valuable NFTs can be used as collateral for acquiring loans. In this guide, we’re going to explore how NFT loans work, and take a look at some existing platforms that have made strides.

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Two aspects of the cryptoverse are gaining popularity — NFTs and 

, are a class of crypto assets that can’t be replicated or replaced.

They’ve become a controversial topic, thanks to 

 selling for staggering amounts of money. 

 refers to blockchain platforms that offer crypto investors financial products and services without the oversight of banks or financial institutions. These platforms enable anyone with an internet connection to borrow, lend or trade crypto assets in minutes without requiring approval from a centralized authority. 

 applications are easy to understand in the context of cryptocurrencies like Bitcoin or Ether. But how do NFTs — which aren’t divisible, and therefore can’t be easily traded — fit in the picture? The answer is NFT loans. Valuable NFTs can be used as collateral for acquiring loans, just as with a house, car, boat or stocks. 

Merging DeFi with NFTs is opening up a whole new economy for this emerging class of crypto assets. In this guide, we’re going to explore how NFT loans work, and take a look at some existing platforms that have made strides in the NFT/DeFi space.

NFT loans are offered by DeFi platforms. They allow NFT owners to mortgage their NFT pieces or collections in exchange for cryptocurrencies or fiat currency. Many NFTs on the market are highly illiquid, and several DeFi projects have identified the growing need to improve NFT liquidity using solutions such as lending.

 can represent ownership of a wide variety of real world items and digital assets, ranging from 

. The biggest selling point for NFTs is their non-fungibility, which basically means they aren’t divisible and can’t be replicated. 

By contrast, cryptocurrencies are divisible — which means that investors don’t have to buy one 

 in its entirety, but can instead buy fractions at a time. In comparison, all NFTs have a unique digital identifier that ensures they can’t be copied or subdivided. An original NFT can easily be verified on the blockchain.

NFT art by Beeple broke records after it sold for $69,346,250 in March 2021. Image source:

In many cases, NFTs simply point to the location of a digital file, whether it be an audio clip, work of art, GIF or video. The most prominent example of a sale which made headlines last year was NFT artwork 

by digital artist Beeple. The work went for $69 million at 

’s auction house, kicking off the NFT craze back in March 2021. 

Other examples include Twitter co-founder Jack Dorsey’s first-ever tweet, or even 

, an official marketplace for NBA-licensed digital trading cards that features some of the NBA’s biggest stars. Fans can enjoy unique ownership of the licensed trading sports cards or flip them for a profit. 

The first edition of an NFT clip of Kevin Durant dunking a basketball sold for almost $20,000. Image source:

NFTs’ lack of fungibility is great for establishing the uniqueness of assets. It’s created a distinct class of assets for digital items which shares parallels with traditional fine art collecting and other rare physical collectibles, like baseball or Pokémon cards. 

However, non-fungibility isn’t without its flaws. The most prominent one is that it limits what investors can do with their NFTs, which makes NFTs highly illiquid. Once an investor obtains an NFT, the standard option to turn a profit is to sell once its value increases. 

That’s where NFT loans come in, a mechanism made possible thanks to DeFi. NFT-backed loans and fractionalized NFT ownership through 

 are becoming a way to solve the NFT illiquidity problem. These innovations create a market where NFT owners can mortgage their NFT(s) in exchange for cryptocurrencies or fiat.

, it’s generally challenging to use it productively. Unlike fungible cryptocurrencies, NFTs can’t be 

 or otherwise put to work to generate yield. However, NFT-backed loans enable holders to acquire funds using their digital assets as collateral. The loan can then be used to buy more NFTs, purchase tokens that can be converted into fiat, or acquire other tokens that can be deployed into DeFi protocols for yields to generate income.

Sales of NFT art surpassed $2.1 billion in 2021. Image source:

 has made great strides in crypto markets with a host of applications that include apps for lending, renting, staking and margin trading, without involving a bank or centralized authority. DeFi mechanisms such as 

, and others are giving collectors new ways to leverage their NFTs beyond passive buy-and-hold investment strategies.

, which serve as the foundation for transparent, open and self-executing loan solutions which don’t require supervision. They execute predetermined tasks, with users able to access them through simple interfaces, just as with any regular application.

However, the smart contracts used by DeFi platforms aren’t flawless. For example, 

 are a common concern for these platforms. Attackers can exploit the market as they take out a loan, driving the value of the borrowed token underwater. They then buy back the token at a deflated price, repay the loan — and pocket the difference. 

Regardless of these hurdles, NFT loans are slowly gaining exposure to the mainstream crypto market. The NFT ecosystem is currently underdeveloped, likely due to its age and the size of the market, but expanding use cases in

borrowing, staking and fractionalized ownership are pumping growth into the industry. 

Platforms that support NFT loans allow holders to borrow funds and set terms without an intermediary. Borrowers can expect to get a loan amount of approximately 50% of the value of the NFT, with interest rates ranging from 20% to 80%, depending on the popularity of the NFT. 

The beauty of DeFi protocols is how simple, transparent and fast they are compared to traditional lending institutions. There is no centralized authority that needs to check your credit score, verify your real identity and spend days or weeks deliberating your application. 

DeFi platforms use smart contracts to give users complete control over their funds. Assets that function as collateral are sent to a secure smart contract, which acts as an impartial, automated third party programmed to facilitate the lending and borrowing process. 

Lenders decide what they think is the fair value of the collateral, usually by looking at the asset’s past performance, sales history or the 

 of similar NFTs. The floor price refers to the lowest offer price for an NFT from a particular series. Once both parties agree on the terms, the NFT is transferred from the borrower’s wallet into an escrow account, and a smart contract facilitates the loan. 

It sounds simple and clean in theory, but the market isn’t entirely risk-free. If the borrower can’t repay the loan and interest by the end of the loan period, then the lender is entitled to the underlying NFT. Lenders may also not accept new NFT projects as collateral because of price volatility, since they could end up losing if there isn’t any market demand for the defaulted NFT. 

One of the core features of NFTs is that they’re completely unique, indivisible and verifiable, guaranteeing absolute ownership. That means only one owner can fully possess one NFT. Fractionalized ownership of NFTs is a method which allows multiple individuals or parties to own “shares” of a single NFT. 

NFT owners can use fractionalization to mint tokenized fractional NFTs. Some NFTs are extremely high-priced, and fractionalization is a convenient way for several parties to each invest a smaller sum of money to gain fractional ownership of the asset. An NFT that’s an ERC-721 token can be fractionalized into multiple ERC20 tokens, with each one sold individually at a much more affordable price. 

Fractionalization has opened up new horizons for the NFT market and brings numerous benefits, including: 

Fractionalized NFTs have the potential to disrupt the NFT market for digital art, collectibles, in-game items, 

, music and real estate. In all of these areas, 

 can use fractionalization to quickly sell their assets to a wider market that includes small-to-medium investors.

The market for NFT loans is still in its infancy, but there are already a handful of DeFi platforms offering opportunities to mortgage NFTs for permissionless loans. There are also several upcoming projects, such as those using the lending protocol 

, looking to accept NFTs as collateral for loans. Currently, the best platforms for NFT loans are as follows. 

 is basically a digital pawnshop that offers loans using ERC-721 tokens as collateral. It allows users to mortgage NFTs in exchange for various cryptocurrencies, which can then be sold for cash. Lenders offer borrowers loan proposals based on the value of the NFT that’s been put up as collateral. If the borrower accepts the proposal, then the NFT is locked in a smart contract until the terms of the loan are fulfilled. 

The platform has reportedly done over $12 million in volume since its launch in June 2020. The average loan size is $26,000 for one month, but the platform has purportedly facilitated loans as high as $200,000. Default rates hover just below 20%, and vary depending on the NFT. 

Arcade is an NFT lending platform geared mainly toward retail investors with a high net worth and institutional lenders. It’s built on the 

, a noncustodial liquidity infrastructure designed specifically for loans backed by NFTs. 

NFT holders can request loans using one or more of their assets as collateral via the Arcade app. Users must first connect the app with their 

 wallet, select which assets (from the list of supported collections) to use as collateral, and then request a loan with specified terms. 

The platform uses a smart contract to create a wrapped NFT (or 

) which represents the borrower’s loan collateral and is used when requesting a loan. The wNFT is time-locked in an escrow smart contract that notes when the funding principal is both sent to the borrower and repaid to the lender. Arcade earns a percentage of every transaction completed on the platform. 

 is a DeFi lending platform where NFT holders can put down their collection as collateral in exchange for instant access to a trustless loan without having to talk to an intermediary. Users can borrow up to 80% of the value of the asset (as determined by the floor price) and receive an instant permissionless loan from the lending pools.

 is a centralized NFT loan platform that only accepts blue-chip NFT collections valued at over $500,000. These include valuable NFT collections such as CryptoPunks, Bored Ape Yacht Club, and others. Crypto whales who hold these blue-chip NFTs can acquire instant liquidity without having to part with their assets.

Nexo assigns a dedicated account manager to loan applicants. Once an application is approved, applicants can receive a loan without a hard credit inquiry or credit history review. The NFTs held as collateral won’t be liquidated, even if the value of the NFT fluctuates during the course of the loan.

Recently, the market for NFTs has grown exponentially, becoming an estimated $40 billion market in 2021. Decentralized NFT loans are opening up new opportunities for growth in this nascent industry and are slowly gaining mainstream appeal, thanks to platforms like Arcade, NFTfi and Nexo.

NFT loans are solving the illiquidity problem facing most digital collectibles. At the same time, they enable NFT holders to put their assets to work, instead of engaging in simple buy-and-hold strategies. 

Even institutional investors seem to be taking interest in this new market. In December 2021, Arcade announced that it had received $15 million in 

That being said, the adoption of NFTs isn’t completely rosy, with many issues that still need to be worked out. Other than the impact NFT minting has on the environment, one of the other major problems is high gas fees. 

 requires fees which users pay to miners to validate the transaction, thereby adding it to the blockchain. This sounds straightforward, but the issue with gas fees is that they fluctuate. When the network is congested, fees go up, which is unfair to the consumer.

The good news is that Ethereum is actively working to fix this problem by switching to a 

 in 2022. This change will not only solve Ethereum’s energy consumption and carbon footprint problem, but also expand the network and improve its transaction-processing capability. This should ease congestion and reduce gas fees. 

While no one knows for sure where the NFT market will trend next, it’s safe to say NFT loans will continue to offer good investment opportunities in 2022 and beyond. 

NFT loans are a gateway into the NFT/DeFi sphere. They could potentially create exciting revenue streams for previously illiquid assets like NFTs. The core goal of NFT loans is to increase the liquidity of NFTs, providing users access to capital to spend on other projects and services. 

To learn more about lending protocols and how blockchain technology is continuing to develop, check out our guide on 

If you’re keen to get in on the growing NFT scene, find out 

Explained: NFT Loans and How They Work

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