NFT Finance is an emerging sector that ushers in DeFi-type products for NFTs. The creation of credit markets for NFTs adds a new utility layer for them beyond their primary use cases, bringing them closer to becoming a proper, investable asset class. Sub-sectors within NFT finance include Lending/Borrowing, Derivatives, Pricing, Rental, Buy Now Pay Later, Fractionalization, Liquidity protocols, and Analytics.
A brief market sizing analysis of NFT finance estimates it to be approximately $0.2B (according to research by NFTfi in Feb. 2022). This is just a tiny fraction (<0.5%) of the total NFT market size and shows that there is a lot of room for growth.n