Countering Fed and Central Bank interest rate increases, the fall in Bitcoin Savings Account Rates remains unabated.
Ledn Reports Interest rates compressing due to the Bitcoin Futures Basis trade while BlockFi reports their changes are to practice sound risk management and to maximize opportunities to earn.
We can expect continued outflows from Bitcoin Savings accounts as rates fall contributing to liquidity and competitive pressures on Bitcoin pseudo banks. I would expect to see some consolidation in the industry as well-capitalized exchanges look to expand their books by acquiring existing Bitcoin Savings and Loans infrastructure.
Bitcoin savings accounts rely on the demand for lending and borrowing of crypto assets to provide yield for those with savings.
Best Interest Rates for May, 2022
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|Bitcoin Savings Account||Tier||Rate||Tier 2||Rate||Tier 3||Rate||Reward*****|
|Ledn||0-.1 BTC||5.25%||>0.5 BTC||2.0%||—||—||$10USD|
|BlockFi||0-.1 BTC||3%||.1-.35 BTC||1.0%||>.35 BTC||0.1%||$10USD|
Deposits are not insured or protected by Federal Deposit Insurance or Canada Deposit Insurance and are exposed to additional unspecified risks. Deposit at your own risk.
- *Celsius rates change weekly and are compounded weekly. They were accurate at the time of publishing.
- **Nexo rates are compounded daily or can be locked in 30-day term deposits for higher yields. Tiers are measured based on USD value not the number of Bitcoins. Holding Nexo tokens can earn a higher yield.
- ***Crypto.com rates are compounded weekly or can be locked in 30 or 90-day term deposits for higher yields. Staking Crypto.com Coin tokens can earn a higher yield.
- ****Abra rates are compounded daily and paid out weekly. Higher yields are offered for holding CPRX tokens.
- *****All rewards are subject to minimum deposit and/or minimum duration and are subject to change at any time.