CoinMarketCap now publishes interest rates on cryptocurrencies, allowing users to compare and choose
Cryptocurrency data provider CoinMarketCap has launched a new page, where it publishes interest rates offered on several cryptocurrencies, to help users compare and choose a suitable product.
Dubbed “Interest by CoinMarketCap,” the page has launched today with 33 cryptocurrencies and stablecoins. It covers information from major lending platforms, including BlockFi, Celsius Network, and Binance, among others. Users can find annualized interest rates, deposit terms such as minimum duration before realizing returns, and other information about these platforms.
The new offering took about 1.5 months of development - from concept to delivery, Carylyne Chan, chief strategy officer of CoinMarketCap, told The Block. “Our team started by researching interest rates, future prospects of rates in crypto, and analogs to traditional
finance,” she added.
Just like how banks and other financial institutions provide deposit and loan services,
cryptocurrency firms also do so. They offer interest rates to cryptocurrency and stablecoin depositors and lend these to users who may need it for margin trading, hedging, or as working capital.
The cryptocurrency lending sector is currently valued at nearly $5 billion, according to crypto credit assessment startup Graychain. And Celsius and Genesis have the highest volume with 65% of loan originations, per Graychain.
Having interest rates information in one place helps - LoanScan.io has already been providing such information. When asked how CoinMarketCap’s offering is different, Chan told The Block: “We think about this [offering] as part of the whole crypto space, not only focusing on the loans but as interest rates, which will lead us to other products related to it as well - such as detailed derivative data.”
Notably, CoinMarketCap is not charging a fee from companies listed on the Interest page. “We will eventually introduce ads on to the page, similar to the main website,” to monetize the new offering, Chan told The Block.