BlockFi cuts Ethereum (ETH) Interest rate but provides an increase in BTC
Due to the falling market demand in Ether borrowing, Crypto lending firm BlockFi has announced a slashing of the Ethereum’s interest rate, while providing a slight increase in BTC. The new guidelines state,
“BTC Balances above 25 BTC will earn 2.15% interest (up from 2% previously). All balances between 0.5 BTC and 25 BTC will continue to earn 6.2% Annual Percentage Yield (APY)
ETH Deposits between 25 ETH and 100 ETH will change from 6.2% to 3.25% APY. Balances above 100 ETH will earn 0.2% APY.”
As claimed by BlockFi,
“Ether lending market over the last couple quarters has become as stagnant as we’ve ever seen it. Just 3% of their overall loan portfolio is in ETH. Additionally, platforms like Poloniex and Compound are offering borrowing rates on ETH as low at 0.01%.”
However, BlockFi reported that the demand for Bitcoin borrowing and lending has been on the rise, describing it as a “vibrant and growing field.”
BlockFi’s announcement comes as a disappointment for Ethereum investors who were hoping to make secure and somewhat guaranteed annual returns on their coins.
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