A recent Galaxy report pointed out that despite the attachment to the head of the cryptography loan market with two other companies, decentralized requests displayed near the amount of current loans at the end of 2024.
According to the report, the cryptographic loans market amounted to around $ 30 billion on December 31, excluding stablescoins from the position of the collateralized debt (CDP).
This exclusion offers a clearer view of the cryptography loans market. The report noted that some overlaps may exist between the total size of centralized financial loan books (CEFI) and the supply of stablescoins CDP.
The reason is that specific CEFI lenders use cryptographic guarantees for stable CDP typing, which are then ready for out -of -chain borrowers, creating the double counting potential.
Adding Stablecoins CDP is expanding market size to $ 36.5 billion. Tether, Galaxy and LEDN represented 88.6% of the CEFI loans, with a combined loan book of $ 9.9 billion. This group represented 27% of the total cryptography loans, including CDP Stablecoins.
The market size of $ 36.5 billion is down 43% compared to its peak of $ 64.4 billion in the last quarter of 2021. Market contraction is allocated to the collapse of several lenders and to a broader drop in the borrower’s demand.
CEFI for institutions
The ECFI loan consists of three main categories: over -the -counter loans (OTC), prime brokerage services and chain private credit.
These offers target institutional borrowers with personalized conditions and collateral structures, often executed outside chain or via hybrid mechanisms.
Over -the -counter loans remain common among accredited investors due to their bilateral personalization capacities, including adjustable loan / value ratios and terms of maturity.
The main brokers offer funding for margins linked to a narrower set of digital assets and negotiated products in exchange. At the same time, the private chain credit allows users to deploy capital using credit agreements outside the chain via a chain liquidity aggregation.
Although centralized services offer tailor -made credit products, their scope has been considerably reduced due to an increased risk of counterpart and a decrease in retail confidence following high -level inolvices between 2022 and 2023.
DEFI 959% ready since 2022
The emprans open between the protocols DEFI reached $ 19.1 billion in the fourth quarter, spread over 20 loan requests and 12 blockchain networks.
This represents an increase of 959% compared to the last quarter of 2022, when the DEFI market reached a minimum of $ 1.8 billion in open loans. The report attributes the overvoltage to the resilience of platforms without authorization, the mobility of transversal capital and the emergence of specialized loan requests.
Unlike CEFI, DEFI Lending allows users to engage directly with intelligent contracts to borrow and lends assets without intermediaries.
Protocols such as Aave, Compound and Nouvellers Crossfersfers Services offer real -time transparency, flexible rates and automated liquidation mechanisms. The modular design of DEFI allows protocols to adapt to the demand of users, the risk of assets and the conditions of evolving liquidity.
This growth reflects a user preference for the infrastructure minimized in trust and the protocols of operational stability challenged during volatile market conditions.
The report concludes that centralized entities such as the attachment are essential in institutional loans. However, the change of acceleration towards the DEFI platforms reflects a broader realignment of capital flows and risk frameworks within the economy of cryptography.
