Peptide-albumin hydrogels having a self-assembling, 3-dimensional nanofiber matrix are described. The nanofiber matrix comprises an amphiphilic peptide and albumin. The peptide comprises a terminal hydrophobic region, a central turning region, and a terminal hydrophilic region. Methods of making such hydrogels are also described, along with methods of using the hydrogels as scaffolding for tissue engineering, as 3-dimensional cell cultures, and for drug delivery, encapsulation of active agents (therapeutic cells, molecules, drugs, compounds), cell transplantation, cell storage, virus culture and storage.