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On October 16, CoinMarketCap launched a new page that publishes interest rates provided by different stablecoins and cryptocurrencies to help users compare and select a suitable product.
It is quite challenging to determine whether digital assets should be more like the traditional fiat. However, it appears like they are moving in that direction and this is a considerable step. The crypto data provider CoinMarketCap has now launched a new page. In this page, it publishes interest rates provided by different digital assets. The new data now comes in handy in helping the users compare and select a suitable product.
The page, known as “Interest by CoinMarketCap”, launched on October 16, is listing 33 virtual tokens and stablecoins. The page covers information from major lending platforms like Celsius Network, BlockFi, Binance, and many others. Users can now gain access to annualized interest rates. Also, they can see deposit terms like minimum duration before getting any returns, and other information associated with these platforms.
Carylyne Chan, chief strategy officer of CoinMarketCap, said that from concept to delivery, this new offering took almost 1.5 months of development. She added:
“Our team started by researching interest rates, prospects of rates in crypto, and analogs to traditional finance.”
The page shows all the cryptos from where the users can earn interest and also what the borrowing rates are. The users can select their “coin of choice” on the left-hand side and then review the tabs to see what they could earn. Clicking on the links takes you to the page where the lending schemes are set up. Borrowers can also do the same on the borrowing tab.
The Crypto Lending Sector
Just like the other financial institutions and banks offer deposit and loan services, crypto firms also do so. They offer interest rates to the crypto and stablecoin depositors and lend these to the users who may need it for hedging, margin trading, or even as working capital.
Today, the crypto lending sector is valued at almost $5 billion as published by the crypto credit assessment startup Graychain. The same report by Graychain states that Genesis and Celsius have the highest volume with around 65% of loan originations. LoanScan.io has already been offering interest rates information in one place which helps the users considerably.
When asked about how CoinMarketCap’s offering is different, Chan said:
“We think about this [offering] as part of the whole crypto space, not only focusing on the loans but as interest rates, which will lead us to other products related to it as well – such as detailed derivative data.”
Surprisingly, CoinMarketCap is not receiving any fee from the companies that are listed on its Interest page. The platform plans to introduce advertisements on the page similar to the main website.
The new feature is a good development for the crypto industry since the traditional high street banks offer lousy savings rates with looser monetary policy gripping the world. The only shortcoming that may arise is the lending rate versus volatility. If someone lends BTC at 6% but the price drops by 6% they will be out of money. But any HODLER of large amounts can put the coins to good use.
CoinMarketCap has not raised any external funding to date and it is wholly bootstrapped. Chan affirmed that the platform does not plan to raise nay funds soon planning to continue bootstrapping and scaling at the moment. The company is growing and looking to hire more people soon.
The company has scheduled to host its inaugural conference in November in Singapore. Commentators and analysts expect it to announce more new products at the conference. Though Chan did not disclose the details of that event, she believes that the products will help to enhance the experience for users coming to the CoinMarketCap platform.
The company made its first acquisition in June 2019 taking over tech startup Hashtag Capital. That acquisition aimed at offering a ‘true price’ for cryptocurrencies and digital assets to the users.