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.

Final Take

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.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Shiraz J
Shiraz is a multi-year cryptocurrency analyst and blockchain journalist residing in Melbourne, Australia. When he is not writing about the bitcoin ecosystem, he enjoys the art of meditation, playing the blues and traveling the world.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex & Tether Class Lawsuit Revised; Adding Bittrex and Poloniex to Alleged BTC Price Manipulation

Revised lawsuit on Bitfinex’s alleged price manipulation of the market using Tether (USDT) during the 2017 bull run to $19,800 has added two...

‘Masked Hero' Calling to ‘Buy Bitcoin' Amidst the Peaceful Protests and Riots in the US

Bitcoin is taking an active part in the riots across America. People are protesting since last week over the death of George Floyd,...

DiversiFi, Formerly Ethfinex, Launches Its DEX 2.0 With Starkware; Processing 9,000 + TPS

Bitfinex sister decentralized exchange, DEX in short, DiversiFi, which relabeled from Ethfinex in August last year, announced a relaunch of their platform, now...

Bitcoin Difficulty Sees 2nd Largest Drop of 2020 to 9.29%; Hashrate & Price Continue to Dance

Today, the bitcoin network difficulty took a drop of 9.29% to 13.73 trillion, as per Coinwarz. This is the fourth downwards adjustment this year after...

Japan’s Top Banks Join Crypto Exchange-Led ‘Study Group' to Discuss Digital Payment System

Three Japanese banking industry heavyweights are joining arms in a study group to focus on digital payment settlement networks in the country. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today