What is NFT Staking?

The topic of NFT continues to evolve aggressively and offer the market additional tools to capitalise on.

NFT staking involves temporarily locking up NFTs on a particular platform or protocol in order to reap rewards and other benefits. It is a process that allows NFT holders to utilise their unused assets without having to sell them. This mechanism works similarly to cryptocurrency steaking.

NFT staking allows users to earn passive income from their unused assets. NFTs remain owned by the user and they can withdraw them from staking at any time.

This opens up incredible opportunities for NFT holders, as they now have an additional source of income generation without having to sell their crypto assets. The rise of NFT steaking has paved the way for concepts such as NFT lending or fractional ownership of NFTs.

NFT staking cannot boast a strong popularity yet, but many well-known players in the blockchain space have already started experimenting with the topic. Binance has launched the Ape NFT Staking Programme for users who own NFTs within the Bored Ape Yacht Club (BAYC) to earn daily rewards.

There are projects like Lynk NFT Staking. Lynk currently offers an attractive annual percentage yield (APY) in the range of 256-438%. There are no additional fees involved in betting. Users will only have to pay a nominal gas fee, thanks to Lynk being deployed on the Arbitrum network.

Infrastructural changes in the cryptocurrency market will continue, and with the arrival of AI, the NFT sphere will begin to undergo even more dynamic changes and the emergence of new asset classes is not far off in any case.