Bloomberg News reports that this is a difficult time in crypto lending. Most crypto investors bet on Ether, ETFs, and Bitcoin. One investor, Craig Bowman, estimates that he was earning equivalent to 25,000% yearly when he was lending out his crypto holdings. But now, according to him, his returns have shrunken, but it is pressing on anyway.
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These investors form a part of the vast network where people have used their crypto assets for earning outsized interests. However, it is not an easy task to ascertain the amount of money that is involved. But before the market plunged, the amount surpassed several billion.
There are several ways to determine the amount involved. Staking and yield farming are two ways and involve using coins to process the orders on the blockchain. The main concern is whether the investors will get their crypto back.
It is considered much safer to invest in USDC compared to TerraUSD, the algorithmic stable coin that dipped in value recently, though this was supposed to be pegged to the dollar.
Bloomberg News reports that there is one more illustration indicating trouble for the crypto lenders since cryptocurrencies are being tested. The yields have tumbled and oscillated in every corner of the market, ranging from the obscure one to the well-known. The cost of those crypto assets that are tied up in many decentralized platforms plunged by 60% since January, recording a figure of $39 billion per DeFiPulse, a website for crypto analytics.
Crypto lending and yield farming have received much criticism from some of the industry’s biggest names. To add to the woes, the recent trouble at Celsius and Babel Ltd and Coinbase announcing layoffs has added to the already delicate market and anxiety of the lenders and investors. Many have had to part ways with their money in the process.
