NFTs have gained massive adoption within the crypto space, with a 20 times growth between 2020 and 2021. Not just that, brands like Adidas, Lamborghini, Coca-Cola, Nike, Louis Vuitton, etc., have already embraced the future and launched their first NFTs/collections.
As NFTs grow in popularity, we look for better ways to access and benefit from them. Soon, this revolution will be part of our ordinary life where people use a certain NFT to book a holiday apartment or attend real-life events like concerts.
NFTs Lending & Leasing — a unique way to let individuals use or experience a particular NFT for a limited period without actually having to own it — is predicted to be a leading force driving the popularity and growth of the NFT world in the following years.
1. NFTs Lending & Leasing gives NFTs more utilities to hold
According to the reNFT Research Campaign, most NFT owners hold more than 10 NFTs. If NFTs are just simple unique cards or in-game assets, they aren’t enough to attract investors or collectors anymore.
This increases interest in rental solutions where NFT owners can lend or lease their NFTs to others. Now, they can monetize their NFT assets to get multiple passive income streams while still holding the invested asset for capital gains in the long run.
2. NFTs Lending & Leasing lowers the high entry barrier for non-NFT owners
NFTs Lending & Leasing will play a significant role in the NFT world because it reduces the current high entry barrier for certain NFTs.
Currently, you have to spend a considerable amount of money buying an NFT. For example, if you want to join Axie Infinity, you have to purchase their NFTs, which cost hundreds to thousands of dollars. The same situation applies to virtual properties in games like The Sandbox or Decentraland, making it difficult for most users to get their hands on.
However, with NFTs Lending & Leasing, everyone can be a part of this digital revolution, no matter their financial status. They can embrace the NFT assets for free but enjoy significant benefits in the crypto space.
Borrowers just need to share the net profit from your Play2Earn earnings according to the % split set up in advance, while Lesses only have to pay a fixed agreed upfront fee (one-time cost) and start using rented NFTs.
Such an affordable investment for non-NFT owners to keep up with this trend!
3. NFTs Lending & Leasing allows more gamers to monetize their assets
It is undeniable that Play to Earn Games has driven the boom of NFTs in the past year with many successful names: Axie Infinity, Gods Unchained, Splinterlands, The Sandbox 3D, Alien Worlds, Battle Racers, Star Atlas, etc.
Unlike traditional games, NFT gamers can take their in-game assets to an NFT marketplace and sell them to other players or collectors. Alternatively, they can utilize NFTs Lending & Leasing for more practical benefits.
While NFT Owners (Lenders, Lessors) can simply lend or lease their assets and earn passive incomes, the Borrowers/Lessees also benefit by accessing a particular NFT only for the period they intend to use or experience it.
4. NFTs Lending & Leasing enables Game Guilds to attract more non-NFT owners
With the rapid development and expansion of GameFi and play-to-earn projects and protocols, people no longer think playing games is just entertainment or a waste of time. Still, gaming has become a form of investment that makes real money.
However, most newcomers face high entrance costs before they can earn. Many projects also lack the infrastructure and support necessary to attract more users.
As a result, game guilds are born to help gamers overcome the high price barrier of entry and train newbies to play the game profitably. They buy in-game NFTs and rent them out to their members like scholarships.
As Game Guilds cooperate with different play-to-earn projects, members can play multiple types of games and earn from them at a nearly free cost.
NFTs Lending & Leasing is the next development stage within the crypto space. Expensive NFTs, or any NFTs, are accessible to a broader group of users who couldn’t otherwise afford them while being the safest and easiest way to help NFT owners generate a steady avenue for passive income.