Crypto lending startup BlockFi, which rose to fame with its BlockFi Interest Account (BIA), has decided to slash interest rates on Ethereum holdings. In an email, the company stated that the rate of interest for deposits between 25 ETH and 100 ETH will reduce from 6.2% to 3.25% APY. Balances above 100 ETH will continue to garner 0.2% interest.
BlockFi said that ETH lending has grown stagnant in the last quarter, prompting it to make the change. However, BTC lending market continues to be vibrant. The company has increased the rate of interest from 2% to 2.15% for holdings above 25 BTC. Balances between 0.5 and 25 BTC will continue to earn 6.2% APY.
The new interest rates will be effective from June 1st, 2019. BlockFi had opened up its platform Indian investors last month.
(Image Credit: BlockFi)