The COVID-19 pandemic has hurt the global market and the crypto market has also taken a huge hit. Federal authorities in the US are requesting the bank to inject fiat money by using their lending power which will help to boost the economy.
The crypto lending market has been put to test in these tough times. In 2018, when the market was going down, the crypto lending market was still thriving and shining. However, this time the situation is a bit different.
Market volatility helps the revenue grow
The economic meltdown that we are currently experiencing has shaken the market completely in terms of the prices. Bitcoin’s price plunged by more than 50% initially and then rose again to stability in the $6000 range.
However, Alex Mashinky, the chief executive officer of Celsius, a crypto lending company believes that the market volatility is going to help the revenue grow. This growth in revenue can not be linked to the COVID-19 outbreak.
Crypto lending market doing fine, relatively
A CEO of another crypto lending company BlockFi, Zac Prince tweeted that with the ongoing volatility, the crypto lending market has seen more activity in the last few weeks. Mashinky had also reported that their customers and deposits in the last few months have doubled up.
In this global pandemic, the crypto lending market is doing considerably well as compared to other crypto businesses. The reason behind this is pretty simple. Crypto asset holders are able to access cash without having to lose their assets and this underlying principle is the key to the lending sector thriving.
Volatility a good test for the crypto lending market
The bosses of major crypto lending firms believe that the price volatility is a good test for the lending sector but the companies will sustain and keep on growing, irrespective of how the crypto market behaves. The crypto lending companies are looking for other ways to help their clients to raise more money for themselves without losing their assets.