{"id":59391,"date":"2025-04-15T13:41:24","date_gmt":"2025-04-15T13:41:24","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=59391"},"modified":"2025-04-15T13:41:24","modified_gmt":"2025-04-15T13:41:24","slug":"19b-and-climbing-defi-lending-surges-past-cefi-in-major-comeback","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=59391","title":{"rendered":"$19B and Climbing: DeFi Lending Surges Past CeFi in Major Comeback"},"content":{"rendered":"<p><span>The tables have turned in the world of crypto lending, and <\/span><span>it\u2019s<\/span><span> not even close. In an interesting turn of events showing the market growth regarding CeFi vs DeFi, a report by <a class=\"general-link\" href=\"https:\/\/www.galaxy.com\/insights\/research\/the-state-of-crypto-lending\/\" target=\"_blank\" rel=\"noopener\">Galaxy Digital<\/a> shows that by the end of 2024, decentralized finance (DeFi) lending platforms had racked up a staggering $19.1 billion in open borrows. <\/span><span>That\u2019s<\/span><span> nearly twice as much as their centralized finance (CeFi) rivals, who reported around $11 billion.\u00a0<\/span><\/p>\n<p><span>To put this in perspective, back in late 2022<\/span><span>, DeFi lending was barely scraping $2 billion. Now? <\/span><span>It\u2019s<\/span><span> surged by nearly 960%. <\/span><span>That\u2019s<\/span><span> not just a comeback; that\u2019s<\/span><span>\u00a0a full-blown glow-up.<\/span><\/p>\n<p><span>What\u2019s<\/span><span> behind the rise? Transparency, mostly. DeFi platforms like Aave, Compound, and newer cross-chain options offer borrowers something CeFi often <\/span><span>can\u2019t<\/span><span>: instant access, automated terms, and open books. You can see <\/span><span>what\u2019s<\/span><span> happening on-chain in <\/span><span>real-time<\/span><span>. No backroom deals, no waiting on approvals.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\"><\/div>\n<div class=\"chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\">&#8211;<\/div>\n<div class=\"chart__info-value\">&#8211;<\/div>\n<div class=\"chart__info-value\">&#8211;<\/div>\n<\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\">Log<\/button>\n            <\/div>\n<\/div>\n<\/div>\n<div class=\"chart__container\"><\/div>\n<\/div>\n<p><span>Add new tools that let assets move easily across chains, and the recipe works<\/span><span>.<\/span> <span>Users vote with their wallets, and those wallets connect<\/span><span>\u00a0to DeFi protocols.<\/span><\/p>\n<h2><strong><span>CeFi\u2019s<\/span><span> Institutional Focus in Focus As Trump Turns Isolationist<\/span><\/strong><\/h2>\n<p><span>That said, CeFi <\/span><span>isn\u2019t<\/span><span> going away. <\/span><span>It\u2019s<\/span><span> just playing a different game now.<\/span><\/p>\n<p><span>While retail has drifted toward permissionless DeFi apps, centralized lenders like Tether and Ledn are leaning toward their strengths, catering to institutions. These firms dominate the CeFi scene, controlling nearly 90% of its loan volume.<\/span><\/p>\n<p>Some insights from <a href=\"https:\/\/twitter.com\/galaxyhq?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@galaxyhq<\/a> Research and <a href=\"https:\/\/twitter.com\/syrupsid?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@syrupsid<\/a> on the state of crypto lending:<\/p>\n<p>\u2013 We are still far from the $64 billion peak of late 2021<br \/>\u2013 Tether, Galaxy and Ledn now account for ~90% of CeFi lending<br \/>\u2013 Onchain lending is steadily gaining market share<br \/>\u2013 <a href=\"https:\/\/twitter.com\/syrupsid?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@syrupsid<\/a> thinks\u2026<\/p>\n<p>\u2014 Nina Bambysheva (@ninabambysheva) <a href=\"https:\/\/twitter.com\/ninabambysheva\/status\/1911809432142426559?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">April 14, 2025<\/a><\/p>\n\n<p><span>The deals here are <\/span><span>bigger<\/span><span>, more custom, and <\/span><span>less visible. OTC lending, collateral flexibility, and white-glove services make sense for hedge funds and large firms that <\/span><span>aren\u2019t<\/span><span> ready (or willing) to trust smart contracts with eight-figure loan books.<\/span><\/p>\n<p><span>So, while CeFi <\/span><span>isn\u2019t<\/span><span> growing at <\/span><span>DeFi\u2019s<\/span><span> pace, <\/span><span>it\u2019s<\/span><span> still holding steady in the institutional world.<\/span><\/p>\n<h2><strong><span>CeFi vs DeFi: Market Contraction and Recovery<\/span><\/strong><\/h2>\n<p><span>Zooming out, though, the entire crypto lending market has shrunk since the bull run. In Q4 2021, the total lending market hit $64.4 billion. Today, <\/span><span>it\u2019s<\/span><span> down 43% to $36.5 billion.<\/span><\/p>\n<p><span>Why? The collapse of major lenders like Celsius and BlockFi, paired with broader market fatigue, spooked many borrowers. Even now, some are still licking their wounds. Demand <\/span><span>hasn\u2019t<\/span><span> fully returned, especially in CeFi.<\/span><\/p>\n<p><span>But <\/span><span>DeFi\u2019s<\/span><span> bounce suggests recovery is underway, but it\u2019s not where people expected. Instead of running back to centralized lenders, users <\/span><span>explore<\/span><span> decentralized alternatives with fresh eyes and maybe a little more caution.<\/span><\/p>\n<p><strong>DISCOVER:<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/crypto-presales\/\" target=\"_blank\" rel=\"noopener\"> The 12+ Hottest Crypto Presales to Buy Right Now<\/a><\/strong><\/p>\n<h2><strong><span>The Future of Crypto Lending<\/span><\/strong><\/h2>\n<p><span>Here\u2019s<\/span><span> the big picture: the lending world is splitting. CeFi is becoming a backroom affair, <\/span><span>mostly<\/span><span> for big-money players. DeFi, <\/span><span>conversely<\/span><span>, is increasingly open to anyone with a wallet and a bit of curiosity.<\/span><\/p>\n<p><span>Will the lines blur again in the future? Maybe. But for now, <\/span><span>we\u2019re<\/span><span> watching two parallel paths. One is permissioned, institutional, and tailored. The other is permissionless, transparent, and picking up serious momentum.<\/span><\/p>\n<p><span>As crypto lending continues to grow in popularity, <\/span><span>it\u2019s<\/span><span> clear that DeFi <\/span><span>isn\u2019t<\/span><span> just back \u2014 <\/span><span>it\u2019s<\/span><span> leading the charge into whatever comes next.<\/span><\/p>\n<p><strong><span>DISCOVER:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"noopener\"><span>20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><a class=\"editor-rtfLink\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"noopener\"><span>Join The 99Bitcoins News Discord Here For The Latest Market <\/span><span>Updates<\/span><\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h3>\n<p>        DeFi lending hit $19.1B in open borrows by the end of 2024, nearly doubling CeFi\u2019s $11B and marking a 960% surge since late 2022.    <\/p>\n<p>        Transparency, automation, and cross-chain support from platforms like Aave and Compound are driving users toward DeFi.    <\/p>\n<p>        CeFi lenders are shifting focus to institutional clients, offering custom OTC deals and flexible collateral terms.    <\/p>\n<p>        The overall crypto lending market shrank 43% from its 2021 peak, but DeFi\u2019s rebound signals growing user trust.    <\/p>\n<p>        Crypto lending is diverging: CeFi serves institutions behind closed doors, while DeFi is leading a transparent, permissionless comeback.    <\/p><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/19b-and-climbing-defi-lending-surges-past-cefi-in-major-comeback\/\">$19B and Climbing: DeFi Lending Surges Past CeFi in Major Comeback<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>The tables have turned in the world of crypto lending, and it\u2019s not even close. In an interesting turn of events showing the market growth regarding CeFi vs DeFi, a report by Galaxy Digital shows that by the end of 2024, decentralized finance (DeFi) lending platforms had racked up a staggering $19.1 billion in open [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-59391","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/59391"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59391"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/59391\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}