The total size of the crypto-credit market fell to $ 36.5 billion in Q4 2024, a decrease of more than 40% compared to his all time at the end of 2021.
The Crypto credit market remained far from its former highlights at the end of the first quarter of 2024, with analysts at Galaxy Digital treasures the total outstanding loans at $ 36.5 billion, well below the peak of $ 64.4 billion that was seen at the end of 2021. In one research report On April 14, Galaxy attributed to the “decimation of lenders on the supply side, and funds, private individuals and business entities on the demand side.”
Cefi lenders were hit hardest during the recession of 2022-2023. Some of the largest centralized financial lenders per loan book size “crumbled in 2022 and 2023” when the prices of the crypto assets separated and “liquidity on the market dried up”, Galaxy wrote. Companies such as Genesis, Celsius Network, Blockfi and Voyager have all requested bankruptcy.
CEFI Loans peaked on an estimated $ 34.8 billion, but a wave of bankruptcies seems to have fallen the market by 82% to $ 6.4 billion, according to the data. The top three CEFI lenders – Tether, Galaxy and LEDN – had a combined loan book of $ 9.9 billion, or 88.6% of the CEFI market. That is comparable to Q1 2022, when Genesis, Blockfi and Celsius formed 76% of the market.
Decentralized financing loans has been recovered stronger. Open loans in 20 loans -apps and 12 blockchains rose to $ 19.1 billion with Q4 2024, an increase of 959% compared to the lowest layer of $ 1.8 billion in Q4 2022, which Galaxy described as a “Testament of the design and chain -apps.”
