- Binance Exchange has unveiled a new platform feature that allows users to secure loans using NFTs as collateral.
- The feature adds utility to NFTs by allowing people to use their assets to borrow crypto.
- Initially, Binance only supports Ethereum loans and “Blue Chip” NFT collections.
- The development has seen Binance coin identify support, and now a breakout is imminent.
Binance exchange has made its foray into the non-fungible token (NFT) lending space after launching a new feature on its platform on May 25. Based on the announcement, the feature allows users to leverage NFTs as collateral in securing loans.
We are excited to announce our latest product, the Binance NFT Loan.
— Binance NFT (@TheBinanceNFT) May 25, 2023
Get instant liquidity with your selected blue-chip NFTs.
Instant Borrowing
Zero Gas Fees
Liquidation Protection
Competitive Interest Rate
Read the blog for more details:
With the new venture dubbed Binance NFT Loan, the exchange has signed up for competition against industry peers like Blur’s NFT lending protocol, Blend.
Also Read: Binance Coin price action alerts traders that a slide below $300 is forthcoming
Binance NFT Loan
Binance NFT Loan aims to add utility to non-fungible tokens by enabling market participants to use their assets to borrow crypto. It comes shortly after NFT marketplace giant Blue unleashed its NFT Lending protocol christened Blend earlier in May. Nevertheless, unlike Blue, Binance employs a peer-to-pool mechanism, making its platform a loan pool.
From the report, Binance will commence operations with support limited to Ethereum loans and “Blue Chip” NFT collections. These include Bore Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. The exchange sharing that it has shared its plans to introduce more features in the future, all toward making Binance the go-to place for NFT trading and decentralized finance (DeFi).
An excerpt from a press release by Binance head of product, Mayur Kamat, reads:
Binance NFT loan feature will provide new liquidity options for holders, allowing them to participate in the market without having to let go of their precious NFTs.
While interest rates will be set at 3.36% per year, Binance will change this to 11% per annum later, alongside a loan-to-value ratio between 40% and 60%. Nevertheless, with the new feature, Binance has revitalized competition within the NFT space while simultaneously revolutionizing NFTs from being simple jpegs to becoming properties capable of serving as collateral. This is a major advancement for the non-fungible token ecosystem, enticing a similar move from other entities.
Binance Coin price gears for a positive reaction
At the time of writing, Binance Coin (BNB) price is gearing for a bounce from the $303 support level. However, bulls must increase their buying pressure to overpower selling pressure from the 200-, 100-, and 50-day Exponential Moving Averages at $308, $313, and $315, respectively. An increase in buying pressure above these levels could see the exchange token shatter the $316 hurdle. A four-hour candlestick close above this level could invalidate the current bearish outlook shared by the broader market.
In a highly bullish case, BNB price could reach higher, tagging the $325 hurdle that denotes a 6% uptick from the current price.
BNB/USDT 4-hour chart
Conversely, if sellers overpower the bulls, Binance coin price could drop toward the $303 support level or even lower to test the significant psychological support at $300, collecting sell-side liquidity underneath.
Also Read: BNB price recovery rally threatened as Binance trustworthiness is questioned
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Three Arrows Capital demands $1.5B increase in the FTX lawsuit
Liquidators managing Three Arrows Capital's (3AC) bankruptcy have filed a motion to raise their claim against FTX from $120 million to $1.53 billion. Bloomberg reports that FTX allegedly liquidated and seized around $1.33 billion in assets from the hedge fund to settle debts just two weeks before 3AC’s collapse.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP open interest has declined by over 10% in the past 24 hours. Robinhood's listing of XRP could serve as a catalyst for renewed demand. XRP continues to struggle near historically strong resistance after sustaining another rejection at $0.7440.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
After reaching a three-year peak of $0.43 on November 12, Dogecoin price wobbled 13% to find support at the $0.38 level on Wednesday. Miners capitalized on Trump’s recent D.O.G.E confirmation statement to offload 620 million DOGE in the last three days.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.