Encryption Lending Market Report: Scale Reaches $36.5 Billion, Significant Rise in Decentralized Finance Field

A recent report on the cryptocurrency lending market shows that by the fourth quarter of 2024, the entire crypto lending market has reached a size of $36.5 billion. This figure is a 43% decrease compared to the historical peak of $64.4 billion in the fourth quarter of 2021, but it still demonstrates the market's resilience and recovery capacity.

The report divides the encryption lending market into three main parts:

• Centralized Finance (CeFi) lending: $11.2 billion
• Decentralized Finance (DeFi) lending: 19.1 billion USD
• encryption asset-backed collateralized debt position (CDP) stablecoins: 6.2 billion USD

It is worth noting that the DeFi lending market has experienced significant rise since the low point in the fourth quarter of 2022. Over eight quarters, DeFi lending grew by 959%, from $1.8 billion to $19.1 billion. This rise is primarily attributed to the permissionless nature of DeFi platforms and their resilience during market turbulence.

In the CeFi lending sector, the market concentration is relatively high. The top three lending institutions include a stablecoin issuer, a large digital asset company, and a Canadian lending platform, which reached a loan book size of 9.9 billion USD by the end of the fourth quarter of 2024, accounting for 88.6% of the CeFi lending market.

The report also指出 that the structure of the encryption lending market has undergone significant changes. During the bull market cycle from 2020 to 2021, DeFi lending applications accounted for only 34% of total cryptocurrency borrowing. However, as of the fourth quarter of 2024, this proportion has risen to 63%, nearly doubling.

Regarding future trends, the report predicts:

1. CeFi lending will tend towards institutionalization, and traditional financial institutions may enter the market.
2. On-chain private lending may rise, and tokenized debt instruments may increase transparency and reduce management costs.
3. Decentralized Finance may become further institutionalized and innovative, as regulatory clarity increases and the advantages of on-chain liquidity may accelerate institutional adoption.

Overall, despite the significant adjustments in the encryption lending market, it still demonstrates strong resilience and rise potential, especially in the Decentralized Finance sector. As the market continues to evolve, we may see more innovation and institutional participation, further driving encryption lending to become a core component of digital financial infrastructure.