The scale of the encryption lending market is 36.5 billion USD, and the DeFi sector has increased by 959% to become dominant.

Crypto Assets Lending Market Report: Scale Reaches 36.5 Billion USD, Significant Rise in Decentralized Finance

The recently released report on the "Status of Crypto Assets Lending" comprehensively analyzes the development of the crypto lending market. As of the fourth quarter of 2024, the total scale of the crypto lending market reached $36.5 billion, a 43% decrease from the peak of $64.4 billion in the fourth quarter of 2021. Nevertheless, the decentralized finance (DeFi ) lending sector has performed outstandingly, showing a significant rebound from the bear market low.

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Decentralized Finance Sector Rise Obvious

The report indicates that the current market is mainly composed of three parts:

  • Centralized Finance ( CeFi ) Lending: 11.2 billion USD
  • Decentralized Finance ( DeFi ) Lending: 19.1 billion USD
  • Crypto Assets supported debt position ( CDP ) stablecoin: 6.2 billion USD

Galaxy Crypto Assets Lending Market Report: Market Size $36.5 Billion, Decentralized Finance Sector Rise Noticeable

The CeFi lending market is highly concentrated, with the top three institutions Tether, Galaxy, and Ledn accounting for 88.6% of the market share. Among them, Tether alone occupies about 73%, reaching a scale of 8.2 billion USD.

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Decentralized Finance Sector Rises Significantly

In contrast, the DeFi lending sector shows a strong rise. Since the low point of $1.8 billion in the fourth quarter of 2022, DeFi lending has risen by 959% over eight quarters, reaching a scale of $19.1 billion. This growth is attributed to the permissionless nature of DeFi platforms and the resilience demonstrated during market turbulence.

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Decentralized Finance Sector Rise Clearly

Overall, the Crypto Assets lending market is undergoing structural changes. The market share of DeFi lending has risen from 34% during the bull market of 2020-2021 to the current 63%. If CDP stablecoins are included, on-chain lending accounts for 69% of the entire market. This indicates that on-chain lending is gradually becoming the dominant force in the market.

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Decentralized Finance Sector Rise Notable

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Significant Rise in the DeFi Sector

In the future, the crypto lending market may present the following trends:

  1. CeFi lending will become more institutionalized, with traditional financial institutions expected to enter the market.

  2. On-chain private lending may rise, and tokenized debt instruments will enhance transparency.

  3. Decentralized Finance will further develop, attracting more institutional participants.

  4. Market differentiation will continue, Decentralized Finance is expected to maintain a dominant position, while CeFi may revive due to institutional entry.

  5. On-chain lending will become a core component of digital financial infrastructure.

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Significant Rise in the DeFi Sector

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Significant Rise in DeFi Sector

Galaxy Crypto Assets Lending Market Report: Market Size $36.5 Billion, Significant Rise in DeFi Sector

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Decentralized Finance Sector Rises Significantly

Galaxy Crypto Assets Lending Market Report: Market Size 36.5 Billion USD, Decentralized Finance Sector Rises Significantly

Galaxy Crypto Assets Lending Market Report: Market Size $36.5 Billion, Decentralized Finance Sector Rises Significantly

Overall, although the market size is still below historical highs, the crypto lending market is developing towards a more transparent, standardized, and institutionalized direction. The rapid rise of DeFi lending is particularly noteworthy, indicating the potential of decentralized finance models. However, market participants must remain vigilant about potential risks, including factors such as asset price volatility and regulatory uncertainty.

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0xLuckboxvip
· 07-14 23:14
Decentralized Finance this time is indeed bull.
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GameFiCriticvip
· 07-14 14:43
The data for DeFi is very stable.
View OriginalReply0
SchrodingerPrivateKeyvip
· 07-13 13:19
Decentralized Finance is on the rise!
View OriginalReply0
MemecoinTradervip
· 07-13 13:19
ngmi if u still think cefi is the future... defi eating their lunch rn fr fr
Reply0
AirdropSkepticvip
· 07-13 13:19
The lending market is surprisingly large.
View OriginalReply0
TokenRationEatervip
· 07-13 13:16
Decentralized Finance一马当先 bull啊
View OriginalReply0
DEXRobinHoodvip
· 07-13 13:16
Bull, Decentralized Finance is the big boss
View OriginalReply0
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