American Bank Deposits Reach All-Time Low - Become Your Own Bank With Collateral Network
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With several high-profile banks collapsing in the past six months, individuals are losing confidence in traditional banking systems. These crashes, alongside poor financial management by governments, have caused some individuals to move to DeFi alternatives.
The number of people actively using DeFi in 2023 has grown by 7 million in just three years to 8.5 million. While several projects have gained traction, Collateral Network (COLT) is growing significantly faster than the market average, offering a number of advantages over traditional protocols.
Collateral Network Presale Surges As Confidence In TradFi Declines
Collateral Network's unique advantages have made it extremely popular in the DeFi space. Collateral Network looks to change how we interact with assets by creating a new way to raise funds against them. With Collateral Network, DeFi users can raise funds against physical assets like supercars, diamonds, watches and more without pawning the asset.
Instead, an individual looking to borrow funds can take a loan against their asset on the blockchain. To achieve this, the asset is minted as a fractionalized NFT and sold to lenders who loan cryptocurrency. This process can help borrowers unlock funds in just 24 hours and never impacts their credit rating.
At the same time, lenders can produce a passive income with their loans. Lenders will generate a fixed interest rate each time they lend money until the loan is repaid. If the borrower defaults on their payments, their asset will be sold at auction to reimburse the lender. This ensures they always have their investment returned.
Due to its rapid growth, COLT tokens have already increased by 177% during the Collateral Network presale, with tokens currently selling at $0.0277. On its current trajectory, experts predict that tokens will rise to $0.35 before the Collateral Network presale ends, offering returns of 3500% for early buyers.
American Bank Sees Its Largest Quarterly Decline In Deposits
With the banking crisis worsening in Q2, many investors are now looking to diversify their assets. After the collapse of Silicon Valley Bank, Credit Suisse almost went under before being bailed out. However, this collapse showed how volatile the banking market can become.
In Q1, American Bank deposits fell by $472 billion. This is the largest decline since the FDIC first started collecting data and suggests that further banking turbulence may be on the way.
Aside from banking collapses, this decrease was also linked to the rise in interest rates and ongoing economic uncertainty, which has caused many investors to withdraw their funds to ensure their money remains safe should additional banks collapse.
As consumer confidence continues to decrease, experts predict that the number of bank deposits will continue to decline. While this is bad for the banking market, it creates a number of new opportunities for DeFi projects like Collateral Network, which is quickly selling out during phase three of its presale.
Find out more about the Collateral Network presale here: