Overview

The crypto lending industry has reached a market size of $36.5 billion in Q4 2024, down 43% from its peak in 2021. Despite this decline, decentralized finance (DeFi) lending platforms saw a remarkable 959% increase in borrowings from the lowest point in 2022, totaling $19.1 billion across multiple protocols and blockchains. Centralized finance (CeFi) is still dominated by leading players Tether, Galaxy, and Ledn, which hold nearly 90% of the outstanding loans that total $11.2 billion.

Key Points

• The current crypto lending market stands at $36.5 billion, significantly lower than the $64.4 billion peak of 2021.
• DeFi saw a significant resurgence with total borrowings growing 959% since the downturn.
• The top three lenders, Tether, Galaxy, and Ledn, dominate the market with a combined share of nearly 90% of outstanding loans among centralized lenders.

Future Perspectives

The reports predict that the cryptocurrency lending ecosystem is in for a new phase enriched by improved risk-management strategies and increased institutional involvement. It’s expected to bridge traditional financial services with emerging digital asset services, encouraging wider acceptance of cryptocurrency.

For further details, refer to the Galaxy report.