Markets are gaining more knowledge about the Bitfinex BFX tokens, and the BFX market is maturing. Bitfinex has enabled BFX holders to convert their tokens into a type of equity in the exchange, and some BFX holders have done this. In addition, some BFX holders are converting their tokens using the SPVs/trusts, Bitfinex has redeemed some of the BFX tokens on the exchange at par, and BFX fees are also being charged on trades and on lending. The result is a continually decreasing supply of BFX tokens.
The price of BFX/USD is currently around 0.60, and has been steady for the past week, in the background, the rate to borrow/lend BFX tokens continues to rise. When the BFX tokens were first listed for margin trading, the rate to borrow/lend BFX was very low and the lending market was illiquid. This was in part due to the expectation that the price of BFX tokens would rise. Now that the market has settled into a more stable price range, traders seem more willing to borrow BFX at higher interest rates.
Currently, BFX tokens are being borrowed/lent for a 7.19% simple annualized rate. This represents a large increase over the past few months. This rate is still lower than the USD rate, but about the same as the current BTC rate on both Bitfinex and Poloniex.
