- CoinMarketCap is now publishing information on crypto interest rates
- The development took 1.5 months to prepare
- The initiative is a boost to DiFi
Cryptocurrency data website CoinMarketCap.com has created a new page showing interest rates offered by different cryptocurrencies. This latest step shows that cryptocurrencies could mutate towards becoming like traditional FIAT currencies.
33 Different Stablecoins and Cryptocurrencies
The new page, christened “Interest by CoinMarketCap” was launched on Wednesday, October 16, 2019, and is supposed to help users make a comparison before choosing their most suitable product. The page initially covers at least 33 different Stablecoins and cryptocurrencies and carries information from several leading cryptocurrency lending platforms such as BlockFi, Celsius Network, and Binance to name a few.
With the new offering, cryptocurrency firms will now offer services such as a deposit and loans similar to traditional financial institutions. Crypto lending companies now offer interest rates to cryptocurrency and Stablecoin depositors and lend these to users who may need it for margin trading, hedging, or as working capital. CoinMarketCap’s chief strategy officer Carylyne Chan told a popular crypto media house the initiative took the firm 1.5 months from the conception stage to delivery. Chan stated:
“Our team started by researching interest rates, future prospects of rates in crypto, and analogs to traditional finance.”
The website shows the different cryptocurrencies one can earn interest on besides showing the borrowing rates. By clicking on a tab showing the “coin of choice” users can quickly check through the different tabs to know what they will earn. By clicking on the link users are directed to a page showing lending schemes while those who intend to borrow can do the same on the borrowing tab.
Boost to the Crypto Lending Sector
According to crypto credit assessment firm Graychain, the cryptocurrency lending sector AKA Digital Finance (DiFi) is worth $5 billion with Genesis and Celsius taking the lion’s share with 65 percent of loan originators. Website users will henceforth be able to find annualized interest rates, deposit terms such as a minimum duration before realizing returns, and other information about these platforms.
The initiative by CoinMarketCap is a positive development in the cryptocurrency industry and a boost to the crypto lending sector considering the pitiable saving rates being offered by the conventional banking system thanks to emerging loose monetary policies. The crypto lending sector (DiFi) is flourishing even though there are not yet any serious statistics published to show the clear picture in the market.