Tether, Galaxy, LEDN Dominate Cefi Crypto Lending as Defi Borrowing Soars: Report
The Crypto Lending Market is still a shadow of its former size before the brutal 2022-2023 winter crypto, but under the surface, signs of recovery are emerging, especially in the decentralized corner of the space, the Digital Asset Investment Firm Galaxy Research said in A Report on Monday.
The total crypto lending market raised $ 36.5 billion by the end of 2024, along with loans supported by crypto-collateralized stablecoins, according to the report. It was a steep decline from a $ 64.4 billion peak that was seen at the height of the 2021 Bull Run when borrowing against the crypto emerging in the middle of a wave of speculation -haka enthusiastic.
The collapse, which has been able to collapse by the collapse of major lenders such as Celsius, Blockfi and Genesis, has left several large players to dominate the centralized financial sector (CEFI) of the lending space. According to the report, Tether boasts the largest part of the market, followed by Galaxy and LEDN. These three creatures have about 90% of the remaining loans in the $ 11.2 billion CEFI loan book. Notably, CEFI loans drop 68% from the early 2022 peak of $ 34.8 billion.
True growth is playing onchain, the report is found.
Decentralized lending protocols, which allow users to borrow crypto by blocking a collateral operating around the clock and without relying on a centralized creature, are rapidly expanding. Since the market dropped in late 2022, open Defi borrowings rose to 959%, up from $ 1.8 billion to $ 19.1 billion throughout 20 applications and 12 blockchains, Galaxy said.
“Looking forward, the cryptocurrency lending market appears to have prepared for a new phase of growth, characterized by improved frameworks of risk management, more institutional participation, and clearer regulation guidelines,” the Galaxy Research’s analyst writes Zack Pokorny.
“As the sector continues to grow old, it can serve as a bridge between traditional finances and the emerging ecosystem of the digital asset, facilitating the broader adoption of cryptocurrency-based financial services,” he added.
Read more: APX lending gets $ 20m funding amid ‘rising demand’ for crypto -supported loans in Canada
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