Close Menu
ApeWatcher News
  • Home
  • Advertise
  • Headlines
  • Crypto
    • News
    • Bitcoin
    • Ethereum
    • Altcoin
    • View All
  • DeFi
  • NFT
  • Metaverse
  • Guides
  • Rates
  • Videos
  • Listing Platform
  • BSC
  • ETH
  • Listing Platform
  • BSC
  • ETH
What's Hot

What’s Next for XRP, DOGE, SOL as BTC Breaks Record Highs?

May 23, 2025

From Wall Street to Crypto: Sebastian Bea on the Institutional Playbook for Digital Assets

May 23, 2025

Pictures give glimpse inside Trump’s memecoin holder dinner

May 23, 2025
X (Twitter) Telegram
  • Listing Platform
  • Home
  • BSC
  • ETH
Advertise
X (Twitter) Telegram
ApeWatcher News
  • Headlines
  • Crypto
    1. News
    2. Bitcoin
    3. Ethereum
    4. Altcoin
    5. View All

    What’s Next for XRP, DOGE, SOL as BTC Breaks Record Highs?

    May 23, 2025

    From Wall Street to Crypto: Sebastian Bea on the Institutional Playbook for Digital Assets

    May 23, 2025

    Tron’s Justin Sun Defends TRUMP After Presidential Dinner, Says ‘Memecoins Have Merit’

    May 23, 2025

    Singapore Crypto Awareness Hits High Despite Ownership Dip

    May 23, 2025

    Bitcoin open interest hits record high as BTC slips below $111K

    May 23, 2025

    Swedish health firm jumps 37% on first Bitcoin buy, China EV seller to buy 1K BTC

    May 23, 2025

    ‘No questions asked’ Bitcoin launderer gets 6 years in prison

    May 23, 2025

    US tourist drugged by fake Uber driver and robbed of $123K BTC — Report

    May 22, 2025

    Bitcoin Primed To Go Higher Faster Than Expected, Says Analyst Michaël van de Poppe – Here Are His Targets

    May 22, 2025

    Whale buys back ETH holdings after missing $2.6M gain

    May 22, 2025

    Ethereum holders back in profit as ETH price enters ‘crucial area’ for $3K breakout

    May 21, 2025

    Arthur Hayes Gives Portfolio Update, Says ‘Nasty Correction’ Could Be Approaching This Year for Crypto

    May 21, 2025

    XRP price fails to respond to two extremely bullish developments — Here is why

    May 22, 2025

    Solana price fractal targets rally to $260, but one thing must happen first — Analysts

    May 22, 2025

    Crypto Trader Says Bitcoin Has Entered Price Discovery, Updates Outlook on Ethereum, Solana and Dogecoin

    May 22, 2025

    XRP futures OI rises 25% as price chart ‘bull flag’ targets $14

    May 22, 2025

    What’s Next for XRP, DOGE, SOL as BTC Breaks Record Highs?

    May 23, 2025

    From Wall Street to Crypto: Sebastian Bea on the Institutional Playbook for Digital Assets

    May 23, 2025

    Pictures give glimpse inside Trump’s memecoin holder dinner

    May 23, 2025

    Tron’s Justin Sun Defends TRUMP After Presidential Dinner, Says ‘Memecoins Have Merit’

    May 23, 2025
  • DeFi
  • NFT
  • Metaverse
  • Guides
  • Videos

    Bitcoin Hits All Time Highs AGAIN… Here’s What’s Next

    May 22, 2025

    Discover Crypto, Bitcoin & Altcoin News

    May 22, 2025

    SUI WAS HACKED FOR $200 MILLION!!

    May 22, 2025

    Bitcoin PUMPING! We Predicted It PERFECTLY!

    May 22, 2025

    BITCOIN to $200K?! (BEST Altcoins to Buy NOW!)

    May 22, 2025
ApeWatcher News
Home » Crypto lending down 43% from 2021 highs, DeFi borrowing surges 959%
Crypto lending down 43% from 2021 highs, DeFi borrowing surges 959%
News

Crypto lending down 43% from 2021 highs, DeFi borrowing surges 959%

Coin TelegraphBy Coin TelegraphApril 14, 20250 ViewsNo Comments
Share
Facebook Twitter LinkedIn Pinterest Email

The crypto lending market’s size remains significantly down from its $64 billion high, but decentralized finance (DeFi) borrowing has made a more than 900% recovery from bear market lows.

Crypto lending enables borrowers to use their crypto holdings as collateral to obtain a crypto or fiat loan, while lenders can loan their holdings to generate interest.

The crypto lending market is down over 43%, from its all-time high of $64.4 billion in 2021 to $36.5 billion at the end of the fourth quarter of 2024, according to a Galaxy Digital research report published on April 14.

“The decline can be attributed to the decimation of lenders on the supply side and funds, individuals, and corporate entities on the demand side,” according to Zack Pokorny, research associate at Galaxy Digital.

Crypto lending key events. Source: Galaxy Research

The decline in the crypto lending market started in 2022 when centralized finance (CeFi) lenders Genesis, Celsius Network, BlockFi and Voyager filed for bankruptcy within two years as crypto valuations fell.

Their collective downfall led to an estimated 78% collapse in the size of the lending market, with CeFi lending losing 82% of its open borrows, according to the report.

While the overall value of the crypto lending market has yet to reach its previous highs, DeFi lending has made a significant recovery according to some metrics.

Related: Trump kills DeFi broker rule in major crypto win: Finance Redefined

DeFi borrows grow nearly 10-fold

The crypto lending market found its bottom at $1.8 billion in open borrows during the bear market in the fourth quarter of 2022.

However, DeFi open borrows rose to $19.1 billion across 20 lending applications and 12 blockchains by the end of 2024, representing a 959% increase over the eight quarters from the 2022 market bottom.

“DeFi borrowing has experienced a stronger recovery than that of CeFi lending,” wrote Galaxy Digital’s research associate, Pokorny, adding:

“This can be attributed to the permissionless nature of blockchain-based applications and the survival of lending applications through the bear market chaos that felled major CeFi lenders.”

“Unlike the largest CeFi lenders that went bankrupt and no longer operate, the largest lending applications and markets were not all forced to close and continued to function,” he added.

Related: Google to enforce MiCA rules for crypto ads in Europe starting April 23

Outstanding CeFi borrows are worth a collective $11.2 billion, which is 68% lower compared to the peak $34.8 billion combined book size of the CeFi lenders achieved in 2022.

CeFi Lending Market Size by Quarter End. Source: Galaxy Research

The three largest CeFi lenders, Tether, Galaxy and Ledn, account for a combined 88.6% of the total CeFi lending market and 27% of the total crypto lending market.

Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research

Read the full article here

Follow us on Google News to get the latest Updates

 
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

What’s Next for XRP, DOGE, SOL as BTC Breaks Record Highs?

May 23, 2025

From Wall Street to Crypto: Sebastian Bea on the Institutional Playbook for Digital Assets

May 23, 2025

Tron’s Justin Sun Defends TRUMP After Presidential Dinner, Says ‘Memecoins Have Merit’

May 23, 2025

Singapore Crypto Awareness Hits High Despite Ownership Dip

May 23, 2025

Bitcoin open interest hits record high as BTC slips below $111K

May 23, 2025

Hackers using fake Ledger Live app to steal seed phrases and drain crypto

May 23, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Articles

What’s Next for XRP, DOGE, SOL as BTC Breaks Record Highs?

May 23, 2025

From Wall Street to Crypto: Sebastian Bea on the Institutional Playbook for Digital Assets

May 23, 2025

Pictures give glimpse inside Trump’s memecoin holder dinner

May 23, 2025
ApeWatcher News
X (Twitter) Telegram
  • Privacy Policy
  • Sources
  • Terms and Conditions
  • Contact
  • Advertise
© 2025 Ape Watcher News

Type above and press Enter to search. Press Esc to cancel.