- According to the latest data, the total active collateral in the crypto lending markets increased by 1170% over the last five quarters.
Increased demand for cryptocurrencies has also been reflected in the cryptocurrency loan market over the past year. The latest evidence of this is an extensive study by Credmark, reproduced by analysts at Arcane Research, which says that from Q3 2019 to Q4 2020, the total active collateral in the lending market grew by 1170%.
As you can see in the chart above over the last five quarters, this value increased from $ 1.9b (Q3 19) to $ 24.3b (Q4 20).
However, analysts also focused on how many bitcoins were used as collateral for various crypto loans.
The findings show that in situations where 50% of all loans are covered by BTC collateral, the value has increased from 206,122 BTCs (Q4 19) to 462,671 BTCs (Q2 20) and 419,070 BTCs (Q4 20).
Some experts estimate that the correct is rather the situation that up to 70% of all loans are covered by BTC collateral, which shows slightly higher numbers. Specifically, in Q4 19 the value is 288,557 BTCs, Q2 20 in the amount of 647,739 BTCs and in Q4 20 at 586,698 BTCs.
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