Crypto Loans See Solid Growth, Platforms Attract Community Interest

It may seem surprising, but platforms designed for loans and lending through the use of cryptocurrencies are a relatively new development for the crypto industry.

A young industryCryptocurrency loans platforms began to develop during the bear market of 2018, as crypto prices became critically low at the peak of the downturn.

Today, the entire crypto loaning industry is estimated at $4.7 billion and the number of crypto loan platforms is growing rapidly, according to a report made by blockchain company Graychain Ltd. While lenders have only earned a combined $86 million in interest since 2018, the demand for cryptocurrency loans is growing.

There are also critics of crypto loans who claim that crypto credit is expanding too quickly and will explode, as the signs of a bubble in this area are too similar to the traditional problems of financial markets: low lending standards and an excessive supply of funds with little demand and increased risk.

Crypto loans platform comparisonSpread out all over the world, below are the most distinctive crypto lending platforms.

Such loans also have collateral and have the same structure as BlockFi crypto loans.

Borrowers can take advantage of a 50% discount on the loan's interest rate if the security deposit or loan repayment is paid in Nexo tokens.

"Our customers only pay interest on the amount they borrow. In contrast, other lenders require you to withdraw the entire amount of a loan at the time of origination, meaning customers pay interest on their full loan."

At the moment, Celsius Network is one of the biggest crypto loan platforms in the world, reaching $4.25 billion in total crypto loans in November.

"Clients were using loans to buy more crypto to use as collateral for yet another loan and then using that again to buy more crypto for collateral. They would do this process manually multiple times. So, we invented an automated tool that completed this chain for them in one click."