As of July 1, 2025, lending platform Ledn has stopped supporting Ether and is now fully focused on Bitcoin. This decision raises various opinions but opens up new opportunities and poses threats to the Bitcoin lending market.
Focus on Bitcoin
Ledn has decided to drop support for other cryptocurrencies and focus solely on Bitcoin. While this move may be seen as a manifestation of Bitcoin purity, the company argues that the goal is to simplify the product and enhance its Bitcoin lending capabilities.
Bitcoin-Backed Loans and the Current Market Situation
Despite past turbulence in the Bitcoin lending market, Ledn is optimistic about the future. Easing regulations in the crypto business are anticipated due to the new U.S. administration's efforts. The repeal of the SAB 121 rule is also expected to facilitate Bitcoin lending. Furthermore, the accumulation of Bitcoin by large corporate and institutional players creates stable conditions for increasing Bitcoin lending operations.
New Threats to Bitcoin Lending
The focus on Bitcoin from individuals and institutions presents risks for lending. The situation, where many players are refusing to sell their Bitcoins and are accumulating them, may lead to a shortage of Bitcoins available for lending, which in turn raises borrowing costs and increases market volatility.
Bitcoin lending is under pressure from changes in demand and liquidity constraints. While increased purchases of Bitcoin from institutional investors may create positive scenarios, inaccessibility of Bitcoin for borrowing could complicate the functioning of the entire lending segment.
