Bitstamp is presenting the latest insights from their June 2024 Lending Performance Report for Bitstamp Earn Lending.
Whether you’re new to crypto lending or a seasoned expert, this update from Bitstamp reportedly offers valuable information “on the current lending landscape.”
In collaboration with Tesseract, Bitstamp has created “a comprehensive report that highlights the performance of Bitstamp’s lending product.”
According to Bitstamp, you may gain a clear understanding of “the strategies and strengths that drive our Earn Lending product.”
Key insights from the Bitstamp report are as follows:
Their June Lending Performance Report offers “a thorough examination of Bitstamp’s Earn Lending service,” including:
- Market trends analysis: Explore the factors influencing crypto prices and market movements in June.
- Portfolio performance: Review the overall growth, active loans, and asset distribution within our lending portfolio.
- Collateral levels: Detailed insights into the collateralization of each asset.
- Borrower leverage: An analysis of debt-to-equity ratios, providing a snapshot of the financial health of our borrowers.
Bistamp says that they “prioritize transparency and simplicity, ensuring you have a clear view of our product’s performance and associated risks.”
As clarified in the update, the availability of Bitstamp Earn Lending depends on many considerations, “including the entity to which you are onboarded and the jurisdiction where you reside.”
Lending is not available in the US, UK, and Singapore.
As stated in the report from Bitstamp:
“The performance of crypto borrowing portfolios can vary based on several factors, including the quality of the borrowers and the collateral they provide. Understanding the performance and quality of such portfolios is essential for crypto lenders looking to maximize their returns while managing the risk involved.“
As mentioned in the report from Bitstamp, the cryptocurrency market is “constantly changing, with new developments and market shifts happening at a rapid pace.”
Bitstamp pointed out that June 2024 saw a decline in cryptocurrency prices.
Several factors contributed to the “selling pressure of BTC, which affected the broader cr ypto market, reducing the total market capitalization from $2.68 trillion to $2.44 trillion.”
The report added that the selling pressure “stemmed from the Mt. Gox estate announcing plans to start repayments to creditors in early July, large sums of seized assets being moved by the German and U.S. governments to centralized exchanges, significant BTC ETP outflows, and increased BTC selling by miners.”
Although BTC and ETH fell by 10%, they “outperformed the wider market, which dropped by 19%, and particularly the meme coin sector, which had a strong May but declined in June. A notable exception was Telegram-linked Toncoin (TON), which recorded a +20% gain for the month and is up +330% year-to-date.”
The report from Bitstamp also mentioned that the trading activity slightly “declined across the cryptocurrency market during June 2024, in ne with the price decrease.”
Exchange volumes decreased “from $1.24 trillion in May to $1.11 trillion in June, with
Binance’s market share continuing to fall.”
Looking ahead, the cryptocurrency market remains “poised for further developments
and price movements,” according to the report from Bitstamp.
The macro-outlook is supportive for crypto assets, with “a growing economy and an increasing likelihood of interest rate cuts later in the year.”
Additionally, there has been positive progress “for ETH ETPs in the U.S., which many analysts expect to go live in Q3 2024.”
Bitstamp concluded that this development has the potential to “introduce more people to the broader crypto economy and technology.”