Cryptocurrency lending startup BlockFi has announced changes to its interest rates: interest rates on ether (ETH) deposits are being cut by almost half, while some bitcoin (BTC) rates are being raised slightly.
According to BlockFi, beginning on June 1, users with BlockFi Interest Accounts (BIA) that contain balances of 25 to 100 ETH will see the interest rate drop from 6.2 percent annual percentage yield (APY) to 3.25 percent. Users who have over 100 ETH in their interest accounts will earn just 0.2 percent APY.
Accounts with deposits of over 25 BTC will see a slight interest rate increase from two percent to 2.15 percent. Accounts that contain 0.5 to 25 BTC will see no change to the current 6.2 APY.
BTC lending market vibrant, ETH stagnant
BlockFi said that the changes are based on how the borrowing and lending markets for bitcoin and ether have become vibrant and stagnant, respectively.
“On one hand, the Bitcoin borrowing and lending markets have developed into a vibrant and growing field,” said the company. “On the other, the Ether lending market over the last couple quarters has become as stagnant as we’ve ever seen it.”
Aside from announcing the changes to their interest rates, BlockFi also took the opportunity to reveal details on new updates being rolled out for the BlockFi dashboard.
In the coming days, users will be able to view the value of their BIA account balance in USD as well as the total amount of earned interest to date. The firm is also adding interest calculators and support for withdrawal submission in the dashboard.