2019 has been the year in which crypto lending has really taken off. Centralized and decentralized finance have been major growth areas, aided by crypto exchange integration and a backdrop of negative interest rates in the banking sector. Why be penalized for saving fiat when you can be rewarded for saving crypto?
Also read: How to Trade Crypto in Person Safely
Crypto Lending Options Are Stacking Up
Competition among crypto lending platforms is heating up. With major exchanges such as Binance throwing their considerable weight behind the movement, incumbent platforms have been sharpening the pencil in a bid to offer their lenders and borrowers a better APR. This week, for instance, Nexo, cut its borrowing rates to as low as 5.9%. Given that many crypto lenders are prone to charge up to 4% in origination fees and 5-13% in liquidation fees, Nexo is confident that its improved offer will entice crypto borrowers shopping around for the best deal.
That shopping process has gotten a lot easier thanks to the emergence of crypto lending comparison portals. These platforms provide a side-by-side comparison of what the leading centralized and decentralized lending solutions have to offer. Last week, Coinmarketcap launched a product that heralds its entry into the growing defi market. The tool, which the listing site has dubbed Coinmarketcap Interest, features finance data such as the best annualized interest rates for borrowing and lending cryptocurrencies across a variety of platforms.
Coinmarketcap doesn’t hold first mover advantage in this sphere, however, as there are already a number of high-level tools for analyzing the lending marketplace.
Loanscan is perhaps the gold standard in the sector, and after a redesign in May the site is better than ever.