Crypto Lender Experiences Surge in Bitcoin Deposits.

News • 2020/04/30 • by Remitano

There may be a business recession in some quarters, but it appears that the crypto industry is consolidating its place, as crypto lending platform records increase in customer deposits. This is the narrative of crypto lending platform- Celsius Network, as they hit a new record of 50 thousand bitcoin deposits, worth over $380,000,000. The company has not gotten this close to meeting this target since its inception in 2018.

According to the company CEO- Alex Mashinsky, one of the factors responsible for the sustained increase in deposits and user-base is the perception of how bailout funds were appropriated in 2008 and 2020. He believes that most of the biggest recipients of these bailout funds are the blue chips companies, corporations and groups with strong political connections. This kind of discrimination prevents vulnerable people, who need these bailouts, from accessing them because of security conditions that they are unable to fulfill.

Therefore, because of the social gaps that already determines what some categories of people have access to, crypto lending platforms were established to meet the needs of everyday people, and are gaining increased acceptance.

The Rise in Crypto-lending

There has been a significant increase in the number of crypto lending platforms over the years. Not only was there an increase in numbers, but also the depth of market penetrations. According to Cointelegraph, Celsius Network was the fastest growing crypto lending platform in 2019, with over $2 billion in loan assets. By the end of the year, the company had grown its loan assets to $4.2 billion.

Other players like BlockFi, Nexo, and SALT Lending have entered the crypto lending space since then. As more people begin to look at the cryptocurrency ecosystem this period, more opportunities in decentralised finance will arise.