Lending

BlockFi lowers interest rates on ether deposits under 100 ETH by near half

May 22, 2019, 4:15PM EDT

Startup BlockFi has announced it is significantly lowering interest rates on ether deposits starting June 1. The decision stems from the fact that the ether borrowing and lending market has not been developing as well as the Bitcoin market has; instead, it has become "stagnant" in the last two quarters. According to BlockFi, other platforms—including Poloniex and Compound—offer borrowing rates as low as 0.01%.

BlockFi announced the rate for deposits of between 25 ETH and 100 ETH will fall from 6.2% to just 3.25% APY. Deposits of more than 100 ETH will earn 0.2% APY. Bitcoin balances, on the other hand, will see a small increase—those above 25 BTC will earn 2.15% interest as opposed to 2%.