Avalanche, Salvor Invest $1 Million in NFT Lending Platform

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Avalanche has partnered with Salvor to introduce an NFT lending platform.

This strategic move could significantly impact the price of Avalanche’s native cryptocurrency, AVAX, as it enhances the utility and liquidity of digital assets within its ecosystem.

Avalanche, Salvor to Invest $1 Million to Build NFT Platform

Salvor’s integration into the Avalanche Rush Program, backed by a $1 million AVAX from the Avalanche Foundation, marks a pivotal development in decentralized finance (DeFi). By enabling users to use their NFTs and meme coins as collateral, Salvor provides a versatile mechanism for securing loans directly in AVAX, fostering greater financial flexibility and enhancing capital efficiency across the Avalanche network.

The platform supports over 800 NFT collections, including major names like Dokyo, MadSkullz, Chikn, and Steady. This extensive reach bolsters the Avalanche ecosystem’s accessibility and appeal to a broader range of DeFi participants.

Avalanche (AVAX) Price Performance. Source: CoinMarketCap

Despite the recent downturn in the NFT market, with trading volumes plummeting by over 30%, the partnership between Avalanche and Salvor could inject new vitality.

“We started as an NFT marketplace to make trading easier for our users. By introducing P2P NFT Lending, users can now borrow funds against their NFTs without needing to sell them. We believe this will play a key role in supporting healthy ecosystems. Our primary focus is to make NFTs more liquid,” Utku, Founder of Salvor, said.

By offering financial instruments and incentives, such as earning points through loan activities and trading, they aim to rejuvenate market engagement and stabilize AVAX’s valuation.