The cryptocurrency company Graychain conducted a study of the loan market and it turned out that the volume of loans in cryptocurrencies exceeded $4.7 billion, but the yield for lenders is less than 2%.
The report reports that almost 100% of loans in cryptocurrencies are issued on collateral. That is, borrowers provide the lender with some asset as collateral in order to ensure payment. However, researcher Robert Walker Cohen believes that this practice will change in the near future.
“The number of loans issued is growing faster than the number of new addresses and the total amount of the issue. This means that people make smaller loans, rather than asking for millions at once. In turn, this suggests that cryptocurrency loans are becoming more popular with ordinary consumers, and not with institutional borrowers, ” Cohen noted.
The data collected by Graychain was obtained from open blockchains, including MakerDAO, Compund, dYdX and Nuo, as well as from open sources, press releases and so on. “We started with the data that we had, used approximations for the missing data and summed up the results,” the report says.
It should be noted that over the past 18 months, 244,000 loans have been issued, while 65% of the market is served by startups Celsius and Genesis. Earlier it was reported that only Genesis Global Trading issued loans for $425 million for the first quarter of 2019