The overall crypto lending market soared to nearly $25 billion in outstanding loans by the close of the third quarter, according to Galaxy Research.
This surge reflects a more than 200% increase since early 2024, yet the market remains below its record peak of $37 billion in the first quarter of 2022.
Alex Thorn, the head of Galaxy’s research team, pointed out this evolution to newly established centralized finance (CeFi) lending platforms and enhanced transparency across the industry.
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Platforms like Genesis, BlockFi, Celsius, and Voyager once held sway, but their downfall, many suffering from exposure to the FTX collapse in November 2022, left a gap that today’s more open platforms have filled.
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CeFi lending has shifted toward more cautious practices. Uncollateralized lending has vanished, replaced by strict over-collateralization, tighter risk rules, and greater openness, measures aimed at attracting institutional capital and preparing for public listings.
On the decentralized side, lending via DeFi protocols also surged. Outstanding loans on decentralized finance (DeFi) applications reached a fresh quarter-end high of $41 billion, up 54.8% from the prior quarter.
When combining DeFi and CeFi lending, total crypto-collateralized borrowing reached an all-time high of $65.4 billion at quarter-end.
Recently, the UK government outlined plans to adjust how taxes apply to people using decentralized finance (DeFi) services. What did the agency say? Read the full story.
