Cryptocurrency trading platform BlockFi has halved interest rates for some of the market’s cryptocurrency-held customers outside the US.
The company has announced that the interest rates for Solana deposits will drop from 10% to 5% as of June 1, while that for Avalanche and Polygon tokens will reduce by 10% to 5% and 11% to 5%, respectively.
The step by BlockFi reportedly shows the volatility in the cryptocurrency space. The company registered a 1,711% increase in assets under management in 2020. The company held $14.7 billion in its BlockFi Interest Account.
BlockFi has faced a decline in institutional investors borrowing amid a downward momentum in cryptocurrency prices. The declining demand cuts across the market, forcing the lending platforms to offer lower returns.
The company’s head of trading Joe Hickey says that he expects that the yields will bounce back despite the rate reduction. Hickey expresses optimism that users were going to keep investing.
On June 1, 2022, we’re updating our rates for AVAX, DAI, DOT, LINK, LTC, PAXG, MATIC, SOL and UNI in the BlockFi Interest Account (BIA)*.— BlockFi (@BlockFi) May 26, 2022
All tiers and the majority of rates will remain the same for crypto assets, including BTC, ETH, Stablecoins (excluding DAI), and DOGE. pic.twitter.com/uUF2MdBAyT