Nexo’s Recovery Shows Crypto Credit Storm May Have Settled
The crypto bear market had largely been brought about by the crash of various lending platforms. Crypto lending firms such as Voyager Digital and Celsius had quickly gone into bankruptcy after being unable to keep up with the market decline. Others, such as Nexo, had felt the heat from these crashes as a result of the bank runs that ensued. But it seems like the worst of the storm has passed as users begin to trust lending platforms once more.
Nexo Begins To See InflowsAfter the various crashes that rocked the crypto lending space, Nexo had taken a big hit in terms of deposits and withdrawals. While deposits had slowed, withdrawals had increased to a point that rumors began circulating on social media that the crypto lender would be the next to go bankrupt.
Nevertheless, Nexo had been able to weather the storm better than the market had anticipated. It had seen slow movement for a while after, but as the market sentiment had begun to recover, Nexo saw more inflows from users.
Nexo customer liabilities grows | Source: Arcane ResearchOn August 29th, the customer liabilities for Nexo were reported to be 199,170 BTC. This is a long way from its May high of 261,111 BTC, just before the market crash, but it shows significant growth from its July 21st low of 169,672 BTC.
Withdrawal pressure on the platform has also eased greatly, as is shown by the customer liabilities attestations. Additionally, it has shown a consistent uptrend in the month of August. A good sign for lending platforms in the space.
Where Is Crypto Lending Headed?Crypto lending platforms have suffered the most in the current market trend, but they continue to receive support as they pass through one of the toughest times. An example is Holdnautm which received creditor protection from a Singapore court about a month after another troubled exchange, Zipmex, was granted the same creditor protection.
Others, such as Celsius and Voyager Digital, continue to battle out their bankruptcy proceedings in the courts of New York. Both lending platforms have been able to provide updates to users, although not to a significant degree.
Nexo price at $1.04 | Source: NEXOUSD on TradingView.comMore encouraging is the fact that news of crypto firms going bankrupt has slowed to a crawl. So despite Nexo being the only platform that has reported positive change, there may be others who are seeing a positive trend, especially given the recent turn in investor sentiment.
Featured image from Business 2 Community, charts from Arcane Research and TradingView.comFollow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Best Owie, @Khareem Sudlow
