difficulty

The Question of Liquidity

While many people consider valuation to be the most challenging aspect of NFT lending, the real issue is liquidity. When taking an NFT as collateral for a loan it would be a recipe for disaster to think it can be sold easily at all points in the market cycle. During 2021 NFTs experienced a huge uptake in their popularity. Some said this surge in demand was the cause of increased gas fees on the Ethereum network. However, in between the two peaks of this surge, there was a terrifying liquidity