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Crypto Lending Business Continues to Boom with Genesis Capital Breaking New Record in Q3

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  • Alex Dovbnya
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    Genesis Capital reports about growing demand for cash loans, which are chipping away at Bitcoin's dominance

Crypto Lending Business Continues to Boom with Genesis Capital Breaking New Record in Q3
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Barry Silbert's Genesis Capital, which ventured into lending back in March 2018, has just released a new quarterly report. In Q3, the company managed to rake in a staggering $870 mln in new originations, which represents a 38.1 percent increase quarter-over-quarter (QoQ). 

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Less demand for Bitcoin loans

After taking a closer look at the report, one can find out that the share of USD loans has increased significantly in the portfolio of Genesis Capital (up by 23.5 percent compared to the previous quarter). There is steadily growing demand for cash loans in the Asian region.  

As we mentioned in our Q2 report, there has been and continues to be strong demand internationally to borrow USD. 

The share of active Bitcoin loans has decreased to 50.2 percent. To put this into perspective, it was 68.1 percent in Q1. In sharp contrast to BTC, altcoins loans have grown in popularity in Q3 (sans for Litecoin).

Genesis Capital
image by genesiscap.co

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A new crypto bubble?

Cryptocurrency lending has been growing at a breakneck pace over the past few years, representing a $5 bln industry. By launching right at the outset of the 2018 bear market, Grayscale was able to turn its business into a success right off the bat given that many customers wanted to lend their coins that depreciated in value.                  

However, as reported by U.Today, there are some warning signs of another cryptocurrency bubble, according to a group of Wall Street trading vets. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Crypto Expert Says Bitcoin and Ethereum Are 'Formidable' Collateral Economies

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    Holding Bitcoin as a collateral is the next big use case for the top cryptocurrency

Crypto Expert Says Bitcoin and Ethereum Are 'Formidable' Collateral Economies
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According to cryptocurrency influencer Chris Burniske, both Bitcoin and Ethereum already represent formidable collateral economies.

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Moving beyond a medium of exchange

In his earlier tweet, Burniske also predicts that holding Bitcoin as a collateral could eclipse its medium of exchange (MoE) use case.  

He even goes as far as claiming that Bitcoin could morph into an off-chain collateral for the world. 

Burniske states that Ethereum has already created a burgeoning collateral economy around it. Apart from extending its utility beyond a pure MoE, this could also drastically decrease the coin's volatility because of all DeFi use cases.   

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The next big thing in crypto

As reported by U.Today, Genesis Capital, a subsidiary of Digital Currency Group (DCG) that rules the roost in the cryptocurrency lending sector, had a record-breaking third quarter with a whopping $870 mln in new originations. 

In Q3, Bitcoin remained the best collateral for crypto with fiat money and altcoins breathing down its neck. The share of USD loans increased by 25 percent quarter-over-quarter.

However, a group of Wall Street traders made a dire warning about crypto lending, claiming that the breakneck speed of its growth could result in another crypto bubble. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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