Cryptocurrency lending continues to grow, Bitcoin loses its share »alt =» Loans for cryptocurrencies continue to grow, Bitcoin loses its share 101 ″ class = »content-img» /> Source: Adobe / Andrey

Prime digital currency brokerage Genesis said its new loans rose nearly 700% year-on-year to an all-time high of $ 25 billion in the second quarter of this year and were also 60% higher than in the first quarter of this year. Also, bitcoin (BTC) is losing its stake in your wallet.

“This marked our thirteenth consecutive quarter of strong loan growth,” the company said, adding that this also brings the earned value originated to $ 66 billion since the Genesis loan business was launched in March 2018.

Market watch report for the second quarter of 2021 stated that despite a 41% drop in the price of BTC from the second quarter, the company’s total outstanding credit assets only decreased by 8% to $ 8.30 billion .

For the composition of the loan portfolio, BTC accounted for 42% at the end of the second quarter, compared to 54% at the end of 2020.

Composition of the loan portfolio 2Q 2021

png »alt =» Cryptocurrency loans continue to grow, Bitcoin loses its share 102 ″ class = »content-img» /> * – and equivalents. Source: Genesis

“Since our weighted average cost of capital (WACC) in crypto assets was significantly lower than our cost in USD, Genesis had more room to lend crypto at lower rates, even when spreads were much tighter,” the agency said. L ‘.

Other highlights include:

  • Genesis traded $ 29.2 billion in cash in the second quarter;
  • the trading desk increased electronic execution from 32.5% of all commercial activity to more than 42%; Despite a 33% decrease in total market trading volume and a 20% decrease in market capitalization, the trading desk generated only 7% less volume than in the first quarter;
  • Custody increased the number of incorporated entities by 22% quarter-on-quarter with 63% of Custody clients also having a trading and / or loan account with the company.

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Additionally, bitcoin trading accounted for about 47% of the company’s overall spot trading activity, up from 80% in Q2 2020. Ethereum (ETH) took the lion’s share of that share, accounting for roughly 25% of the total volumes on the desktop. .

re is also considerable demand for altcoins, according to the report.

According to Matt Ballensweig, Director of Institutional Lending at Genesis, trends in the Genesis business and the wider market “confirm the changing role of bitcoin as an industry entry asset and highlight the emerging leadership of Ethereum and decentralized finance. »(DeFi).

Bitcoin’s market dominance fell from more than 70% at the end of 2020 to less than 45% at the end of the second quarter, while ETH and the ‘top’ DeFi tokens have doubled in price since the beginning of the year. 2021 .____ To find out more: – Zac Prince: What is cryptocurrency lending? – Cryptocurrency savings rates are 10 times higher than High Street, but is it for you?

– DeFi had a strong 2021, driven by new trends and paradigms – NFT as a guarantee for Aave – CEO

– Coinbase Reflects on Ethereum Collateral Amid Loan Program Expansion – Bitcoin Is ‘Perfect’ For $ 20 Billion Global Collateral Market – Research

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