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Crypto Lending Rebuilds From The Rubble, Reaching $25B In New Activity

Crypto Lending Rebuilds From The Rubble, Reaching $25B In New Activity

Published:
2025-12-02 00:24:02
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BTCCSquare news:

Centralized crypto lending has surged to $25 billion in outstanding loans during the third quarter, signaling a resurgence in activity among platforms that weathered the recent market turmoil. Galaxy Research reports the broader crypto lending market stood at $36.5 billion by Q4 2024, a stark decline from its $64.4 billion peak in Q4 2021, reflecting the aftermath of platform failures and bankruptcies.

The market's composition has shifted dramatically, with Tether, Galaxy, and Ledn now dominating the centralized lending space. These three firms collectively held nearly $10 billion in outstanding loans by year-end, accounting for 88.6% of the CeFi segment. Tether emerged as the single largest player.

Decentralized finance has staged a remarkable comeback, with open borrows on DeFi platforms skyrocketing 959% from $1.8 billion during the 2022-2023 downturn to $19 billion by the end of 2024. This resurgence underscores a growing preference for on-chain solutions as centralized options contracted.

|Square

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