The crypto lending market is witnessing an exponential increase in trading activity. According to on-chain statistics shared today by market analyst Token Terminal, trading volume in the crypto lending market has doubled from its 2021 high. According to the data reported by the analyst, trading volume in the crypto lending market has increased from a record $23 billion in 2021 to $48 billion.
The implication here is that while traditional cash lending remains robust, a new alternative – crypto lending – is gaining significant momentum. The digital currency continues to play a crucial function in the modern economy, with data showing that crypto lending is becoming increasingly popular among mainstream investors.
The size of the crypto lending market has doubled since 2021.
But interest in trading DAO tokens is at ~25% of its 2021 peak.
Interesting. pic.twitter.com/TivsCszVW9
— Token Terminal 📊 (@tokenterminal) October 7, 2025
Contribute to this growth
As of today, October 7, 2025, the size of the crypto lending market has reached $48 billion, an increase of 51% from the $23 billion recorded in the fourth quarter of 2021. As shown by the statistics, the main contributor to this impressive growth is the decentralized players. DeFi lending platforms currently control 45.31% of the lending market, compared to 34.57% controlled by centralized projects.
These figures demonstrate substantial performance and highlight the increased interest in decentralized lending and the increasing maturity of the broader virtual credit market. The figures are a joint effort of multiple crypto lending projects that have continually innovated and broadened their products.
Based on the data, crypto lending is becoming increasingly popular due to its accessible, transparent, efficient and open approach. Anyone with an internet connection can access loans without having to deal with the bureaucratic delays that come with banks. DeFi’s peer-to-peer approach allows borrowers to access loans without having to sell their holdings, while lenders earn passive income from their inactive tokens.
Why decentralizing lending is gaining more and more ground
In another interesting development, Coinbase’s lending app recently reached $1 billion in loans, eight months after rolling out the service in January 2025. On October 1, 2025, the exchange announced that it has processed more than $1.003 billion in DeFi loans to date, using BTC as collateral.
The development indicates that many projects are embracing decentralized lending, a step away from CeFi lending. Although crypto lending is theoretically safe, past misuse of funds by some centralized platforms shows that most investors prefer decentralized platforms, which are transparent. The surge in decentralized credit shows its ability to fill the void left by the decline of CeFi, signaling a new era for cryptocurrency lending where innovation, transparency and prudence coexist.
