@lucasvqyp

NFT lending protocols like JPEG’d and Blend provide liquidity without forcing immediate sales, potentially supporting NFT floor prices. By allowing holders to borrow against their NFTs, these platforms reduce selling pressure during downturns. However, high liquidation risk during volatile markets can trigger rapid collateral sales, creating downward price spirals. Usage data shows growing adoption, especially for blue-chip NFTs, but still remains niche relative to total NFT volume. While lending adds a layer of utility and short-term support, sustained floor stability depends on broader demand and market health.

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