Crypto Assets Lending Market Report: Scale of $36.5 Billion, Decentralized Finance Rise Significant

Recently, a research report on the current state of the crypto assets lending market was released. The report comprehensively analyzes both on-chain and off-chain crypto lending markets, reviews market history, key participants, scale changes, and key events, and delves into the operational mechanisms, user groups, and risks of various lending products.

Main Findings

As of the fourth quarter of 2024, the total size of the Crypto Assets lending market reached $36.5 billion, a 43% decrease from the historical peak of $64.4 billion in the fourth quarter of 2021. The market composition is as follows:

• Centralized Finance ( CeFi ) Lending: 11.2 billion USD
• Decentralized Finance ( DeFi ) lending: 19.1 billion USD
• Crypto Assets backed CDP stablecoins: $6.2 billion

The top three institutions in the CeFi lending market account for 88.6% of the share. The DeFi lending has risen by 959% since the low point in the fourth quarter of 2022, reaching 19.1 billion USD.

Market Overview

Crypto assets lending is mainly provided through two channels: CeFi and Decentralized Finance.

CeFi lending

1. Over-the-Counter ( OTC ): Provides customized lending solutions, mainly for qualified investors and institutions.
2. Prime Brokerage: Provides margin financing, trade execution, and custody services.
3. On-chain private credit: Deploy funds through on-chain liquidity pools and off-chain agreements.

Decentralized Finance lending

1. Lending applications: Allow users to deposit collateral to borrow other Crypto Assets.
2. CDP stablecoin: an over-collateralized stablecoin issued with Crypto Assets as collateral.
3. Decentralized Exchanges: Some platforms offer leverage trading features.

Market Development History

Between 2022 and 2023, several large CeFi lending platforms collapsed, leading to a significant shrinkage of the market size. In contrast, Decentralized Finance lending applications demonstrated strong resilience and continued to expand during the market recovery.

Future Trends

1. CeFi lending institutions: Traditional financial institutions entering the market, Bitcoin ETFs promoting the rise of leveraged trading.
2. The rise of on-chain private lending: Tokenized debt instruments enhance transparency and attract venture capital.
3. DeFi innovation and institutionalization: Institutions accelerate the adoption of DeFi, and centralized companies build new services based on DeFi protocols.

Conclusion

The crypto lending market is showing a differentiated trend, with the share of DeFi continuing to rise. The entry of traditional finance brings both opportunities and challenges. On-chain lending is expected to become a core component of digital financial infrastructure, driving the industry towards transparency and scalability.