Maker Crypto Lending Part Of The Industry’s Most Profitable Sector

Decentralized finance (known as DeFi) has taken the Ethereum world by storm. The ETH news this year and studies from firms like Messari have highlighted the success of the technology many times before. What is important to note now is the fact that crypto asset lending is poised for explosive growth. The Maker crypto lending is now part of this most profitable sector, sharing it with firms such as Nexo, Ripio Credit Network, Aave and Cred.

The hype and attention that is surrounding Decentralized Finance (DeFi) now and the growth of several major lending platforms (as mentioned above) has shined a lot more light on one of the crypto industry’s best kept secrets.

There are really tons of reasons why DeFi is succeeding. But if we have to name one, it would be the record low interest rates for savers in traditional banks and financial institutions which were certainly why the Maker crypto lending and other similar platforms have shined.

"Over the longer one-year term no sector had a median ROI higher than Bitcoin’s ROI over the same period (140%)" https://t.co/KMIjyuqp3C

— LongHash (@longhashdata) January 28, 2020

As data shows, the last 90 days saw all of these platforms having an average rate of return of up to 15%. However the real benefit is seen when we evaluate data from last year – we can see that the Maker crypto lending and its competitors have been averaging a return of 75%.

Only Bitcoin has had a higher yearly return than this and there were 349 tokens studied with the same list of criteria, showing that DeFi lending is definitely an industry that is booming. The success by the Maker crypto lending platform (backed by Maker DAO) and the other options allowed the market to shine and offer many opportunities for growth.

Websites like DeFi Pulse are continuously investigating and monitoring the success of the lending options. Currently, the Maker crypto lending and Compound lead the rankings.

At this point, analysts and experts can agree that DeFi is not perfect yet. However, over time, the blockchain news might show updates and attempts to make it easier, mainly with non-over collateralized loans and better debt-collection techniques.

As a final note, we should also point out that Ethereum is not the only blockchain which is pursuing DeFi alternatives to traditional finance models. We have also seen projects like BTCPay server, the Lighting Network and Bisq DAO which are also happening on Bitcoin and are rivalling smart contract platforms like Tron and EOS – which are also in the pursue of DeFi.