Apr 15, 2025

CeFi Lending Sector Recovers 73% Since Last Year’s Low

Lending markets in crypto are showing signs of recovery, according to Galaxy's Zack Pokorny. Key points include:

CeFi lending sector led by Tether, Galaxy, and Ledn had a loan book of $9.9 billion at the end of last year.
Total CeFi loans peaked at $34 billion but dropped to $6.4 billion after significant market declines.
Currently, CeFi lending is up 73% from its lows but down 68% from its highs.
DeFi lending has rebounded significantly, with a 959% increase in open borrows, totaling $19 billion at the year's end.
The number of outstanding loans through on-chain apps surpassed the previous peak of $16 billion.
Recovery attributed to blockchain's permissionless nature and resilience during market downturns.
Future growth for both CeFi and DeFi lending depends on increased institutional adoption and improved risk management frameworks.

Overall, the cryptocurrency lending market is shifting towards a more sophisticated and regulated phase, with potential for broader adoption of digital asset financial services.