The crypto lending platform BlockFi announced that it will cut the crypto deposit interest rates from July 1, 2021. This is the second adjustment since the company lowered interest rates in March.

BlockFi stated that its decision was made based on changing market dynamics and the borrowing needs of institutional investors.

Lower interest rates for deposits including Bitcoin, Ethereum, Chainlink, Litecoin, and some other cryptocurrencies will take effect on July 1. For example, the APY for Bitcoin deposits greater than 20 BTC will be reduced from 0.5% to 0.25%.

Rishi Ramchandani, Director of Business Development for BlockFi Asia, told Coindesk the borrowing demand of BlockFi customers continues to be stronger than ever before, but the loan term has fallen with interest rates.

By Mary Liu