BNB Price Is Ready For A Breakout As Binance Exchange Ventures Into The NFT Lending Space

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  • Binance Exchange has announced a new platform feature that allows users to secure loans using NFTs as collateral.
  • This feature adds utility to NFTs by allowing people to use their assets to borrow crypto.
  • Initially, Binance will only support Ethereum loans and “blue chip” NFT collections.
  • This development confirmed the support of Binance Coin and now a breakout is imminent.

Binance Exchange is a non-fungible token (NFTs) rent out space after launch new function It was announced on the platform on May 25th. announcementthis feature allows users to leverage NFTs as collateral when securing loans.

in a new venture called Binance NFT loanthe exchange has signed up to compete with industry peers like Blend, Blur’s NFT lending protocol.

Also read: Binance Coin price action warns traders of impending drop below $300

Binance NFT loan

Binance NFT loan It aims to add utility to non-fungible tokens by allowing market participants to borrow cryptocurrencies using their assets. This comes shortly after NFT marketplace giant Blue announced an NFT lending protocol dubbed Blend in early May. Nevertheless, unlike Blue, Binance employs a peer-to-pool mechanism, making the platform a loan pool.

According to reports, Binance will begin operations with limited support for Ethereum loans and “blue chip” NFT collections. These include the Boa Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, Doodles. The exchange shared plans to introduce more features in the future, with the aim of making Binance the go-to place for NFT trading and decentralized finance.DeFi).

Here is an excerpt from the press release by Mayur Kamat, Head of Product at Binance:

The Binance NFT Loan feature offers holders a new liquidity option, allowing them to participate in the market without leaving their precious NFTs.

The interest rate will be set at 3.36% per annum, but Binance will later change this to 11% per annum with a loan-to-value ratio of 40% to 60%. Nevertheless, with this new feature, Binance has revolutionized NFTs from simple jpegs to assets that act as collateral, while at the same time invigorating competition within the NFT space. This is a major advancement for the non-fungible token ecosystem and will provoke similar moves from other organizations.

Binance Coin Price Heads for a Positive Response

At the time of writing, Binance Coin (BNB) price is looking for a bounce from the $303 support level. However, the bulls need to increase buying pressure to overcome selling pressure from the 200-, 100-, and 50-day exponential moving averages of $308, $313, and $315, respectively. Increasing buying pressure above these levels could see the exchange token break the $316 hurdle. If the 4-hour candlestick closes above this level, it could invalidate the current bearish outlook shared by the broader market.

In a very bullish case, BNB price could reach the $325 hurdle, which represents a 6% gain from current prices, and go higher.

BNB/USDT 4-hour chart

Conversely, if the sellers overwhelm the bulls, the Binance Coin price will drop towards the $303 support level, or even fall further to test the critical psychological support of $300, and below that. could attract sell-side liquidity.

Also read: Binance Credibility Called Into Question, BNB Price Recovery Threatened



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