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.

Also Read:

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Bosch to try out Ethereum Blockchain based automated car charging station

New Chainalysis Research shows that a third of the Ether’s (ETH) supply is owned by just 376 people

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