TechFlow reported on June 11 that NFTfi, a peer-to-peer lending protocol for NFTs, has announced that it will wind down over the coming months. Under the timetable disclosed by the team, the protocol’s frontend is scheduled to stop providing service at the end of August 2026, closing the web-based entry point that users have relied on to interact with the platform.
NFT market scale no longer supports operating costs
The NFTfi team said the NFT market has contracted to a size that can no longer sustain the protocol’s operating costs. Revenue available to the project is no longer enough to cover operating expenses, and the team said it cannot continue subsidizing the protocol under ongoing uncertainty. As a result, NFTfi has decided to begin the shutdown process for its operations and frontend service.
According to the shutdown plan, NFTfi is no longer accepting new loans. Existing loans may be refinanced before July 31, with each refinancing limited to a maximum term of 30 days. Borrowers may repay at any time before August 31, 2026. After the frontend goes offline, the smart contracts will remain deployed on-chain and continue to run autonomously, allowing users to interact directly with the contracts to repay loans and claim collateral.