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.
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.
Related: Trump kills DeFi broker rule in major crypto win: Finance RedefinedDeFi borrows grow nearly 10-foldThe crypto lending market found its bottom at $1.8 billion in open borrows during the bear market in the fourth quarter of 2022.
or
Share This Story
Article Details
Author / Journalist: Cointelegraph by Zoltan Vardai
The story "Crypto lending down 43% from 2021 highs, DeFi borrowing surges 959%" has 454 words across 14 sentences, which will take approximately 2 - 4 minutes for the average person to read.
Which news outlet covered this story?
The story "Crypto lending down 43% from 2021 highs, DeFi borrowing surges 959%" was covered 1 days ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 27 news stories per day.
It's most recent story was published 8 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
