BlockFi, one of the most popular lending platforms in the cryptocurrency industry, is cutting interest rates offered to non-US customers.
The cut that the company will make covers a few of the leading cryptocurrencies in the market.
According to the statement made by BlockFi June 1 interest on Solana (SOL) deposits as of from 10% to 5%the interest rate offered for Avalanche (AVAX) from 10% to 5%if the rate offered for Polygon (MATIC) from 11% to 5% will fall.
BlockFi lends funds to institutional investors by lending it to its customers. return provides. The value of assets under management of the company during 2020 at a rate of 711 percent showed growth.
This growth has slowed down with the decline in cryptocurrency prices and dwindling institutional investor interest.
BlockFi customers who used to hold one or more BTC on the platform 6.25% could earn income. Now available to customers holding up to 0.35 BTC 1% to 3% return is provided and as the amount of BTC increases, this rate increases by 0.1%.
Joe Hickey, one of the directors of BlockFi, thinks that this trend in the lending market is short-lived. Speaking to the press, Hickey said, “People continue to invest, and I think it’s short-lived, returns will rise again by the second half of the year.” said.