Crypto Loan Industry – Growing or Stagnating


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Crypto Loan Industry - Growing or Stagnating

On October 18, cryptocurrency over-the-counter (OTC) broker company Genesis Global revealed its crypto loan data. According to the business’s results, the total flow of funds passed over $553 million for all combined assets.

The company revealed that its cash flow for the Q1 and Q2 2018 surpassed expectations. Crypto loan trends include the declining Ethereum market and stable Bitcoin loan requests but only within the Genesis platform. Although there is no single database for crypto lending, the industry seems to grow.

Major Success of Genesis’s Crypto Loan Programs

During the past six months, Genesis managed to accumulate $553 million worth of cash flow. Additionally, the firm currently holds $130 million in the outstanding crypto loan, signifying the stable growth of its operations. According to the data, the underperformer during the period was Ethereum while other altcoins saw growth. These include Litecoin, Ripple, Ethereum Classic and Bitcoin Cash.

On the other hand, Bitcoin remained stable, with the interest rates intact. Altcoins also saw restrained supply, driving the interest rates higher. In the Q2, hedge funds dominated the Genesis market while in the Q3, trading and arbitrage firms took the lead. Businesses involved in crypto loan would trade futures and swaps in other platforms. The company awaits the start of Bakkt with anticipation, as the market grows in terms of available trading instruments.


Lending Industry Growing?

The data shown by Genesis Global reflects the six-month period and only its platform. Other businesses and margin trading providers also impact the market, though data is scarce to find. Taking into account report releases from ETHLend and Bitfinex daily statistics, it seems the crypto loan industry does steadily grow. ETHLend announced that it reached $15 million worth of smart contract ending in mid-September.

The report signified the growth since the platform’s beginnings in 2017 by reaching this milestone through peer-to-peer crypto loan market. According to the company’s findings, the performance is above-average when compared to the rest of the industry. However, the stats used for benchmarking took the entire industry, not just the cryptos. Bitfinex reports lending stats on daily basis, with the latest value loaned surpassing $1 billion daily.

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