Cryptocurrency loan market reaches nearly $ 5 billion

The cryptocurrency company Graychain conducted a study of the loan market and it turned out that the volume of loans in cryptocurrencies exceeded $ 4.7 billion, but the profitability for lenders is less than 2%.

The report states that almost 100% of loans in cryptocurrencies are secured. That is, borrowers provide the lender with a pledge of some kind of asset in order to ensure repayment. However, researcher Robert Walker Cohen believes this practice will change in the near future.

“The number of loans issued is growing faster than the number of new addresses and the total amount of loans. This means that people make smaller loans, rather than asking for millions right away. In turn, this suggests that cryptocurrency loans are becoming more popular with ordinary consumers, rather than institutional borrowers, ”Cohen said.

The data collected by Graychain was obtained from open blockchains, including MakerDAO, Compund, dYdX and Nuo, as well as from open sources, press releases and so on. “We started with the data that we had, used approximations for the missing data and summed up,” the report said.

Note that over the past 18 months, 244,000 loans were issued, while 65% of the market is served by startups Celsius and Genesis. It was previously reported that only Genesis Global Trading issued loans of $ 425 million for the first quarter of 2019.