Crypto lending volumes set record as Ethereum DeFi tokens surge

Lending firm Genesis said in a report Tuesday its business saw record volumes this year, presumably as the DeFi market surged ahead and institutional demand for crypto increased.

The firm said that in Q2 this year, its lending business added over $2.2 billion in originations, marking the largest quarter ever with a 324% increase in originations year on year.

"Active loans" outstanding increased by 118% from Q1.In Q2, our lending business added over $2.2B in originations, marking our largest quarter ever with a 324% increase in originations y/y.

Co/fJy6xahsuU. - Genesis August 4, 2020.Yield farmers spike up crypto lending.

In Q2, our lending business added over $2.2B in originations, marking our largest quarter ever with a 324% increase in originations y/y.

The search for yield drove markets in crypto and in other asset classes, "But the last three months seemed specifically yield-centric," the report noted.

Genesis traded over $5.2 billion worth of crypto in Q2. Even its newly-launched derivatives desk saw $400 million worth of volume in June.

Overall, since the business launched, Genesis has originated over $8 billion in crypto loans spread over Bitcoin, Ethereum, and a few others.

The report said the second-quarter was marked by low volatility - rare for the crypto market - which "Forced" traders to turn towards risky strategies like DeFi yield farming for profit.

Joshua Lim, the head of derivatives at Genesis, said hedge funds borrowed additional tokens to deposit on platforms like Compound to earn yield.