From what it is understood, the popularity of non-fungible tokens (NFTs) has moved a notch up with people now renting the tokens. NFT renting, therefore allow users to earn money passively. “Renting of NFTs might contribute to its popularity because it expands its viability both as an investment from people who might not have the time to use it and also as an opportunity to experience the NFT ecosystem for people who do not have the capital to buy it,” Kameshwaran Elangovan, COO, co-founder, Guardianlink, told FE Blockchain.
The overall value of the NFT market is expected to rise to $231 billion by 2030, as per insights from VMR (Verified Market Research), a global research firm. Apart from this, the Global NFT Gaming Market is expected to grow at a CAGR of 32.56% during the forecast period from 2022-2027, as per insights from Mordor Intelligence, a market research firm. Experts believe one of the factors contributing to these figures could be the expected involvement of NFT renting in the real-life reward models of the Web3.0 gaming sector, which might disrupt the traditional payment system.
The monetisation of assets can offer users the opportunity to generate revenue by leveraging their assets, such as property, intellectual property, or digital assets such as cryptocurrencies and NFTs, among others. Applications such as reNFT, UnitBox DAO and Vera, among others, allow users to use multichain decentralised finance (Defi) protocol for NFT rentals and mortgages, which might impact the traditional revenue model. “NFT renting might disrupt certain aspects of the traditional payment system, but cannot replace it. It may bring advancements in the payment landscape. Traditional payment systems and token-based solutions will co-exist, each serving specific purposes and catering to different user preferences and requirements,” Vikas Ahuja, CEO, Metaverk, explained.
Furthermore, sectors such as gaming, banking and real estate industry, among others, can benefit the most from NFT renting. However, “The mainstream adoption of NFT renting and widespread viability as a primary income source is still evolving. Factors such as market demand, regulatory frameworks, and technological advancements play crucial roles in determining its potential. Although monetising assets presents new avenues for income generation, it is also important to carefully assess individual circumstances and risks before considering it as a mainstream income source,” Vikas Singh, co-founder, CEO, NFTFN.xyz, a Web3.0 fintech startup, concluded.