According to TechFlow, NFT peer-to-peer lending protocol NFTfi announced on June 11 that it will gradually wind down over the coming months. Under the shutdown arrangement disclosed by the team, the NFTfi front-end page is scheduled to stop providing service by the end of August 2026.
NFT market contraction drives the shutdown decision
The NFTfi team said the NFT market has shrunk to a scale that can no longer support the protocol’s operating costs. It added that prospective revenue is no longer enough to cover operating expenses, and that the protocol cannot continue subsidizing operations under ongoing uncertainty. Based on that assessment, the team decided to shut down the service.
Under the shutdown plan, NFTfi is no longer accepting new loans. Existing loans may be refinanced before July 31, with each refinancing lasting up to 30 days. Borrowers may repay at any time before August 31, 2026. After the front end goes offline, the smart contracts will remain deployed on-chain and continue to run autonomously, allowing users to repay loans and claim collateral directly through the contracts.