Genesis Makes Waves in Crypto Lending
In the digital currency realm, Genesis has managed to carve out a niche that even piquant Bitcoin fluctuations couldn’t tarnish. The fourth quarter of 2019 saw the firm celebrating its birthday with a cake made of over $4.25 billion in loans facilitated since its launch in March 2018. Talk about a way to throw a party!
A Record-Breaking Quarter
Q4 wasn’t just another day in the office for Genesis; it was a record-breaking quarter. With over $1.1 billion in loans and borrows arranged for institutional clients, Genesis notched its best performance to date. This quarter alone, the company boasted an active loan total of $545 million, promising a 23% increase from $450 million previously. Genesis could almost hear the cha-ching, despite Bitcoin taking a 14% dip.
Growing Interest in Crypto Loans
The crypto loan market isn’t just surviving; it’s thriving. According to estimates, by the end of 2019, the crypto loaning industry was valued at a whopping $4.7 billion, showing a surge in both interest and platforms. More lenders mean more competition, and that’s good news for borrowers who get to pick the best deals.
Remarkable Growth Figures
In 2019, lenders were busy like bees, issuing a staggering 5,400 loans in the first quarter and seeing that number soar to 18,500 in Q2. With lenders dishing out loans worth $64.8 million in Q1 and ramping it up to $159.3 million in Q2, it’s safe to say that the lending market is buzzing with activity.
Dollar Borrowings on the Rise
In an interesting twist, while the market for cryptocurrencies fluctuated, Genesis noted a steady increase in U.S. dollar borrowings, which made up 37% of its active loan portfolio for Q4 2019. Perhaps in these turbulent times, the dollar still reigns supreme!
Competitors Making Moves
As Genesis celebrated, its competition was also making strides. Major players like BlockFi jumped into the fray by adding support for Litecoin (LTC) and USD Coin (USDC). Meanwhile, Celsius made an announcement that was music to the ears of crypto holders—a move towards implementing compounding interest on deposits in its wallet. It seems like the competition is heating up!
A Bright Future
With all these developments, it appears that the crypto lending market is poised for growth. As we venture into 2020, lenders, borrowers, and the whole crypto community could be in for an exciting ride. Who would have thought that despite Bitcoin’s rollercoaster, the lending sector would thrive?
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