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The Market Value of NFT Continues to Rise, REVA Analyses NFT Pledge Era Exclusively

Scanning 2021, it is not difficult to find that NFT has an explosive growth and sustainable development trend, and once set multiple records. It has attracted numerous media reports, major institutions and celebrities have also joined in. So far, NFT has been directly pushed to the peak by data reports.

According to the latest data released by overseas platforms, the total transaction volume of global NFT in 2021 exceeded USD 18billion, an increase of more than 10 billion over 2020, and nearly 200 times the scale expansion. The financial growth has attracted the attention of the entire NFT market.

Looking at all walks of life at home and abroad in the past year, such data growth is unique under the epidemic. Behind this sharp growth in data, it is worth noting that NFT collections are increasing sharply, the market circulation of NFT and value realization, such a blue ocean is waiting to be explored.

According to the survey within the art circle, more than 80% of the high net worth collectors surveyed are interested in exploring and purchasing NFT art. But in contrast, about half of art dealers do not sell such works.

It can be seen that they are now more willing to wait and see, waiting for others to get a return in NFT investment before making plans, that is, most people hold it in a dormant state. From this, it can be seen that the market liquidity of NFT itself is slow and waiting for the opportunity.

Through the survey of high net worth collectors, it is found that up to 74% of people bought NFT works of art in 2021. Of course, the collection of works of art itself is very attractive, and after the collection is attached with the emerging concept of NFT and Metaverse, the value is no longer limited to this. The overall market of NFT presented by these data reports, its value will rise higher, and all kinds of NFT will be extraordinary splendour.

In the one-way linear process of time, the road of development has never stopped. The value output by NFT inevitably needs liquidity to generate transactions, so that funds can flow and be profitable. It has always been the rule of capital.

The price of NFT fluctuates greatly and its liquidity is not very strong. It is always undeniable that the core of NFT’s value is to pursue the development of long-term value, but it is difficult to really predict when it will need liquidity to ensure its own capital operation as a whole.

Therefore, facing the lack of market liquidity of NFT, it is unable to realize its value in time, but it does not want to sell NFT with value potential. REVA firstly introduced the concept of NFT pledge and became the pioneer of NFT pledge era.

When the real value of NFT is known, how to quickly obtain funds, REVA’s conventional pledge method is set up in two ways: platform pledge and pledge to personal positioning.

1) Platform Pledge

The owner of NFT can lend the loan immediately after the NFT is over mortgaged into the platform fund pool. Fund providers can put their tokens into the fund pool to earn interest and earn stable interest. The amount of interest paid by NFT owners depends on the amount of loan funds in the pool and the supply of NFT. If NFT owners do not pay or the price of NFT falls to the clearing line, NFT will be auctioned on Opeasea and other trading platforms, and the funds will be returned to the fund provider.

2) Pledge to Individuals

This model is theoretically applicable to all NFTs. Users register their NFT on the loaning website and get loans from lenders. Pay off and pay interest within a certain period of time. Both lenders and borrowers will make their own choices.

These two methods and processes have also opened the attention of many professional fields when REVA is designed and launched. However, it is precisely because of the existence of these professional platforms that NFT is promoting the market segmentation of NFT that these NFTs possess “potential” value. We often say that brand empowers NFT to obtain higher “potential” value, and REVA is to play a greater role in promoting the market circulation of NFT and provide users with a strong financial backing.

In the past year, NFT has proved its resonance with retail investors. Now, as more and more artists, creators and builders join in innovation, I believe time will tell everyone that NFT will eventually become the driving force of the market, and REVA is a great help to the NFT market.

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