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One of the fastest growing sectors within the cryptocurrency space is cryptocurrency lending.
Here platforms offer a range of services, both for borrowers looking to get some extra funds but also for cryptocurrency holders that want to take advantage of the interest-earning part and lend out their cryptocurrencies.
And one of these crypto lending platforms that are making headway, and showing some big volumes is Celsius Network.
Celsius Network lets crypto-holders earn interest rates up to 11.90% annually which is starting to compete with fiat money savings accounts and other types of investments.
They also provide borrowers with a direct way to get alternative fundings via crypto-backed loans. Here a borrower puts down Bitcoin, Ether, Litecoin or another cryptocurrency as collateral and then they can take out cash or stablecoin loans.
Celsius Network passed the $1 billion mark
This is an impressive amount, considering they only launched less than two years ago. And it is showing genuine interest in these types of services from both lenders and borrowers.
So far the company has also paid out $17 million in interest for the holders that have joined its platform.
This shows that there are ways for cryptocurrencies like BTC, ETH, XRP and others to take on the non-cryptocurrency space and provide equally as useful alternatives.
In the aftermath of BlockFi’s hacking attempt these positive news is surely welcomed by crypto enthusiasts and investors.
Celsius Network sees this growth as a clear example of how wealth can be shifting around the world, through the help of cryptocurrencies.
“Financial equality and economic opportunity are more important today than ever before. We are experiencing a catalyst that requires a fundamental change in the way we earn and distribute wealth, not only in the US but around the world”Alex Mashinsky, CEO of Celsius Network
Cryptocurrency lending is the leading example of mainstream adoption
According to a report by Credmark the crypto lending market surpasses $8 billion as of Q4 2019.
But this number is growing fast and it is tipped by experts in this sector that Bitcoin and cryptocurrency-backed loans are leading the way for cryptocurrency adoption.
Cryptocurrency lending shows how these two worlds, cryptocurrencies and fiat money can be combined with great benefits.
It provides long term cryptocurrency investors with a pathway to get temporary access to fiat money while still keeping a part of their cryptocurrency investments.
There will be ongoing discussion concerning the decentralised alternatives or the private, and centralised ones. Truth of the matter cryptocurrency loans are attracting all types of people and it is one of the fastest growing sectors.
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Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor of Bitcoin and other cryptocurrencies. I’ve been around the space for a good few years, learning how it all works and to be a part of this engaging community.
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