Financial services built on blockchain technology are the new hype these days. For some providers, the time has already come to reduce interest rates by quite a margin.
BlockFi has confirmed that they are lowering the interest rates for both Bitcoin and Ethereum.
BlockFi Already Reduces Interest Rates
This moves comes rather abruptly, albeit the changes will only go into effect as of February 1st.
Bitcoin users currently earn 6.2% interest per annum, but will see that reduced to 5.1%.
For Ethereum users, the rate changes from 4.1% to 3.6%.
While not necessarily major changes, they do represent a dropoff at a stage during which blockchain-based finance only seems to become more popular.
The changes are, according to the company, a way to introduce more earning opportunities for clients.
A bit of an odd way of phrasing it, albeit it seems most users aren’t too concerned about this sudden change.
It will be interesting to see how other service providers fare in the months to come.
With seemingly rising crypto prices, one wouldn’t expect interest rates to be affected per se.
One also has to wonder how sustainable the current business models are once the novelty wears off.
The coming months will prove very interesting for blockchain and decentralized finance service providers alike.