LongHash Report: Number of Crypto Loans Have Soared Over the Past Few Months
- According to research data available online, the monetary value of crypto loans doled out over the past four months is nearly equal the action this market saw sixteen months prior to this boom.
- As things stand, a total of $546 million worth of crypto loans have been issued till date.
Even though cryptocurrency-backed loans have been around for quite some time now, their relative usage quotient has remained somewhat low. However, as per a new report released by LongHash recently, there seems to be a renewed sense of interest in this financial offering — especially over the course of the past four months. In this regard, it is worth pointing out that July’s crypto loan total is double than the previous all-time high for a loan volume for a single month.
As per data available on LoanScan.io, loan volumes since April 2019 (touted to be worth nearly $260 million) have nearly exceeded the total from the previous 16 months (around $284 million).
Experts believe that this rising interest in crypto loans is due to the increased attention that this space is receiving (because of various announcements such as the launch of Facebook’s upcoming stablecoin offering ‘ Libra’).
Till date, only $546 million worth of crypto loans have been handed out interested individuals. To put things into perspective, the fiat-based loan market raked in around $311 billion over the first half of 2019 alone.
In closing out this piece, we need to highlight that out of all the firms working within this nascent market segment, Dharma was the first major platform to bring mainstream attention to crypto loans this past April. Similarly, other firms such as Compound v2 and dYdX have also able to make a huge dent in this market over the past few months.