While many digital assets make up the crypto sector, Bitcoin has been regarded as the king of all the sector’s digital assets. This is not only word of mouth as the digital asset has shown its price movement over the years. Hitting a big achievement to close out last year, the digital asset records a profit of 630%, and it is just beginning this year.
But while other coins have also performed well since the beginning of the year, most of the crypto population are still flocking into the Bitcoin market. In a recent update to buttress that point, three lending firms that deal with Bitcoin hams announced the reaching of a milestone achievement.
There is surging demand for crypto lending
In the recent update, the firms have announced that their assets under management had increased drastically in the last few days. Leading the pack is Celsius, which announced that its total assets under management are now in a region close to $10 billion. This is a huge one for the management firm considering its assets under management were placed at a region close to $550 million at the start of last year. Coming close is BlockFi, who just announced that it has been able to secure a massive raise of $350 million in a recent Series D round that was carried out.
With the rise, BlockFi has announced they now hold a huge $5 billion worth of digital assets. The third firm, Nexo, has bragging rights of managing funds in a region above $5 billion compared to its recent assets under management which was just $750 million from January 2020. According to the managing partner at Nexo, Antoni Trenchev, their clients are looking to adopt Bitcoin on a longer scale as they have great faith in the asset.
Bitcoin still doing well despite volatility
Trenchev also pointed out that their investors are not only hodlers by word of mouth and also backed it up with their funds and faith in the asset. While more investors have taken on the initiative of dabbling into crypto lending, a lot of the thank is owed to the massive rise in the price of digital assets over the past few months.
In the last six months, Bitcoin has led the whole crypto market with the asset dropping a 463% growth in performance. With their massive investment in Bitcoin, firms are also investing in stablecoins as they know that such assets are not affected by volatility, affecting other digital assets. The three firms mentioned above are the industry’s biggest firms when the debate about crypto lending is sparked across the sector.
They manage funds for both retail and institutional investors to look after their digital assets and pay the investors profits for it. The lending firms offer the investors loans while using their assets under management as collateral for holding their digital assets. The firms’ highest rate for loans is 4% to 6% for digital assets, while stablecoins see a return of close to 10%.