Latest Upward Crypto Market Trend Allows For Crypto-Backed Loans To Make A Comeback
Recent Market Surge Is Allowing Crypto-Backed Loans To Make A Comeback
Since the start of the year, the cryptocurrency sector has been enjoying a comeback of sorts — with currencies such as Bitcoin, Ethereum, Litecoin experiencing their highest levels of growth in over 16 months. In addition to all this, the last 4-5 months have also seen the re-emergence of crypto-backed loans, a market offering which at one point was quite popular amongst altcoin-enthusiasts all over the world.
From a purely numbers standpoint, we can see that since 2016 the number of startups offering their clients with bitcoin-backed loans have increased quite exponentially. In this regard, firms such as Salt Lending, Youhodler and ETH Lend have already made quite a mark for themselves since all of them currently operate within multiple markets and allow their clients to acquire loans of varying amounts in a manner that is much more streamlined and hassle free when compared to traditional financial institutions (such as banks, lenders).
Market Demand Continues To Increase
In a recent interview with Nexo’s Antoni Trenchev, the crypto savant stated that his firm has been enjoying continual growth over the past few years despite the market at large being faced with extremely volatile conditions (especially through 2018). To be a bit more specific, we can see that since the company’s inception just over 12 months back, Nexo has proceeded to become one of the world’s largest savings and lending platforms within this ever-evolving space.
Additionally, financial data released by the firm recently has revealed that till date, Nexo has processed a whopping $500 million worth of transactions for its clients. Not only that, but the company has also devised its very own wallet offering that allows users to accrue daily interest on their stablecoin holdings.
- Nexo’s Instant Crypto Credit Line can be used by people to procure loans against their personal crypto assets.
- Some of the currencies that can be used as collateral include bitcoin core, ethereum, litecoin, and ripple.
- The firm makes use of a fixed interest rate model that charges users anywhere between 8% and 16% pa.
- Loans as small as $500 to as much as $2,000,000 can be acquired with relative ease when making use of Nexo.
- Nexo’s Earn Interest offering allows users to acquire interest rates of up to 6.5% on their stablecoin holdings.
Lastly, if rumors are to be believed Nexo’s core dev team is currently in the process of creating a credit card type offering that will make use of a person’s held digital tokens.
As can be seen from the data presented above, the crypto-lending market has made a massive comeback over the course of the last 14-16 months. It now remains to be seen if this sector can sustain its current levels of growth and lure in more investors as we move into the future.