- According to a report by Ripple, the multi-billion dollar crypto credit industry is just getting started.
- XRP is currently available on some large crypto lending platforms such as Celsius, Genesis, SALT, and Nexo.
In an upcoming world of digital assets, crypto-based lending represents a strong and early use case, according to Ripple. In its recent Q4 XRP Markets report, the payment giant said that the multi billion-dollar industry is just getting started.
The digital asset borrowing/lending market saw substantial momentum throughout the past year as this market is now considered a $5 billion industry…
The momentum has been fueled by several factors: low interest rates in many fiat currencies, a growing number of digital asset market participants seeking working capital, and an increasing number of long-term digital asset holders looking to generate yield. While concerns over a ‘crypto credit bubble’ have started to emerge, the growth potential for this market remains substantial into this year and beyond.
Alongside Bitcoin, Ethereum and Litecoin – XRP is currently available on some large crypto lending platforms such as Celsius, Genesis, SALT, and Nexo. A recent Graychain report on the crypto credit industry shows that new loans raised from 5,462 in the first quarter of 2019 to 18,562 in the second quarter (a 239% jump). It also showed that Genesis and Celsius dominate the industry, with 65% of loan origination. According to Graychain, the crypto lending industry is powered by professionals who take out crypto loans for leverage, arbitrage and tax deferment.
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