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CeFi Loan Market Shrinks as DeFi Gains Dominance

2 mins mins
Key Points:
  • Main event: CeFi lending declines, DeFi overtakes as main lender.
  • DeFi accounts for 60% of the market.
  • CeFi loan size reduces 68% from 2022 peak.

Galaxy Digital’s Alex Thorn revealed that CeFi lending shrunk to $11.2 billion by 2024, a significant decrease from the $34.8 billion peak.

DeFi’s share increased to over 60%, marking a shift in the cryptocurrency lending landscape.

CeFi Lending Plummets $23.6 Billion to $11.2 Billion

CeFi lending has experienced a considerable reduction since 2022, a key report from Alex Thorn indicates. The decline from $34.8 billion to $11.2 billion highlights a major shift in the crypto lending space. Thorn identified the top players in CeFi, which include Tether and Galaxy Digital among others.

The dominance of CeFi is no longer evident as DeFi takes the lead, surpassing CeFi’s market size. The total cryptocurrency lending market now stands at $30 billion, with CDP stablecoins and DeFi offering innovative solutions. DeFi’s growth is attributed to its transparency and user trust.

DeFi’s Surge Secures Over 60% Market Share

Did you know? {In 2022, CeFi’s decline marked a turning point, pushing users towards transparent DeFi markets, reminiscent of past financial crises that spurred decentralization.}

CoinMarketCap reports Tether’s USDT maintains stability at $1.00, with a market cap of $144.33 billion and substantial trading volume of $63.32 billion. Price fluctuations remain minor over recent months, reflecting USDT’s continued stability in volatile markets, last updated April 15, 2025.

tether-usdt-daily-chart-19
Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 02:07 UTC on April 15, 2025. Source: CoinMarketCap

The Coincu research team anticipates ongoing shifts as digital financial structures evolve. The increased strength of DeFi, bolstered by regulatory trust and transparency, suggests that centralized models may face further contraction. Data-driven policies could further shape future lending landscapes.

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Avatar of John Kojo Kumi

John Kojo Kumi

15 April 2025, 02:11:30 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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