The proliferation of crypto lending platforms is the latest crypto solution bridging the gap with the traditional financial industry. These platforms offer institutional and retail investors the opportunity to access banking services previously only available in the traditional financial sector.
A typical crypto lending platform enables long-term crypto holders to put their tokens to good use by lending them for agreed-upon interest rates. Doing this beats the passive buy and hold investment strategy and users get access to interest rates that are higher than what the traditional banking sector offers. The financial services provided by these platforms is on par with the services provided by traditional lending solutions. For this reason, crypto holders are increasingly adopting lending services as a way to make passive crypto income. This has led to an explosion of crypto lending solutions aimed at satisfying growing demand.