Tether, Galaxy, and Ledn Control 90% of CeFi Crypto Lending Market
The crypto lending market has shown signs of recovery after a significant decline during the 2022-2023 crypto winter. Key points from the Galaxy Research report include:
- The total crypto lending market is valued at $36.5 billion, down from a peak of $64.4 billion in 2021.
- Centralized finance (CeFi) loans have dropped 68% since early 2022, with Tether, Galaxy, and Ledn holding nearly 90% of the $11.2 billion CeFi loan book.
- Decentralized lending protocols have seen substantial growth, with open DeFi borrowings increasing by 959% from $1.8 billion to $19.1 billion across 20 applications and 12 blockchains since late 2022.
- Future growth in the cryptocurrency lending market is expected, driven by improved risk management, greater institutional participation, and clearer regulatory guidelines.
Overall, the sector may bridge traditional finance and digital assets, promoting broader adoption of cryptocurrency-based financial services.