Cryptocurrency lending platforms are starting to raise their rates again after demand slumped during the first half of the year. Following the collapse of Terra and BlockFi, lending companies faced numerous operational challenges, with many slashing their rates to encourage more borrowing. This trend is now beginning to reverse.

On Tuesday, bankrupt crypto lender Celsius Network sued custodian Prime Trust in an attempt to recoup $17m in crypto that Celsius claims its former business partner still holds. Prime Trust reportedly terminated its relationship with Celsius in June 2021 over “red flags”.

Although NFT trading volumes have gone down recently, the hype surrounding NFTs has allowed some of the world’s most recognisable brands to capitalise on the trend and rake in millions of dollars in additional revenue. 

Top stories in the Crypto Roundup today:

• Crypto Lenders Increase Rates As Borrowing Demand Rises
• Bankrupt Crypto Lender Celsius Sues Prime Trust Over $17M Worth of Crypto 
• Mainstream Brands Record $260m+ In NFT Sales

Crypto Lenders Increase Rates As Borrowing Demand Rises

Cryptocurrency lending platforms are starting to raise their rates again after demand slumped during the first half of the year. Following the collapse of Terra and BlockFi, lending companies faced numerous operational challenges, with many slashing their rates to encourage more borrowing. This trend is now beginning to reverse.

Lending rates often fluctuate based on changing market conditions. One explanation offered by lenders BlockFi and Ledn for the increase in rates is that the lending market is experiencing a lack of liquidity following numerous crypto lenders filing for bankruptcy, including Celsius and Voyager Digital. As such, market participants no longer have the same extent of borrowing options.

In August, rates rose across multiple major lending platforms. BlockFi, Gemini, and Crypto.com all increased their lending rates in August, while Toronto-based lender Ledn has kept rates unchanged throughout the turbulence.  

Mauricio Di Bartolomeo, the co-founder of Ledn, told The Block that lending currently outpaces supply. BlockFi’s global head of trading Joe Hickey echoed this statement, saying that “it’s now much more of a lender's market than a borrower’s market, back then [May] it was more of a borrower’s market.”

Bankrupt Crypto Lender Celsius Sues Prime Trust Over $17M Worth of Crypto

On Tuesday, bankrupt crypto lender, Celsius Network, sued custodian Prime Trust in an attempt to recoup $17m in crypto that Celsius claims its former business partner still holds. Prime Trust reportedly terminated its relationship with Celsius in June 2021 over “red flags.

Via the 54-page suit, which was filed in federal bankruptcy court, Celsius is looking to claim control of assets that are tied to users who used Celsius’ yield product in either Washington or New York. According to Celsius, Prime Trust returned $119m of the total to Celsius when the agreement between the two firms was dissolved in June 2021.

Celsius also alleges that Prime Trust “has refused to fulfil its obligations to transfer” 398 BTC, 196,268 CEL tokens, 3,740 ETH, and 2.2 million USDC that in total are valued at $17 million.

“Upon the commencement of these bankruptcy proceedings, Prime Trust was obligated under the Bankruptcy Code to deliver all property belonging to Celsius that is in Prime Trust's possession to Celsius, including these remaining crypto assets, and should be ordered to turn them over now pursuant to section 542 of the Bankruptcy Code,” Celsius argued in the filing.

Mainstream Brands Record $260m+ In NFT Sales

Although NFT trading volumes have gone down recently, the hype surrounding NFTs has allowed some of the world’s most recognisable brands to capitalise on the trend and rake in millions of dollars in additional revenue. 

Nike, Gucci, Adidas, Tiffany, and Dolce & Gabbana have reportedly amassed a combined $260m worth of sales from NFTs, according to data from Dune Analytics. Of these, Nike’s NFT drops have gained the most traction, with $185.3m in revenue and secondary market volumes approaching $1.3bn.

More recently, Tiffany launched its NFTiff token, which allowed CryptoPunk holders to purchase (mint) personalised pendants. The project had over $12m in sales. Total NFT revenues for Dolce & Gabanna, Gucci, and Adidas were $25.6m, $11.6m, and 10.9m respectively.

Although the NFT mania has quietened recently, many expect the technology to leave a lasting mark. For example, Nike and Adidas both plan to extend the reach of their brands to the metaverse.

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