CEFI lending to $ 11.2 billion, as Defi exceeds 60 % of the encryption credit market

The scene is lending in Encryption It has changed dramatically over the past two years.

Once a prominent sector of encryption and central financing (CEFI) The lenders have witnessed that their presence has decreased significantly, mainly due to the turmoil in the public encryption market and the high regulatory audit of legislators and government agencies. According to a comprehensive review of public files, bankruptcy procedures, and voluntary disclosure of active lending platforms, the size of the suspended loan notebook for the CEFI sector is only $ 11.2 billion, starting from the end of last year-an incredible decrease of 68 % of its highest level ever at 34.8 billion dollars only.

This recession indicates a major transmission in the structure of encryption financing. Meanwhile, decentralized financing, or Defi, continues to grow and appear as a major letter of lending in this sector.

Cefi and NEFI’s’s Fall

As of the end of the year 2024, the batch reveals a mixture of old and new competitors among the top ten central finance (CEFI) from a few job occupants. At the top, there is a rope, which is the source of stablecoin (and everything else) that maintains a major role in the lending space through its subordinate operation, lending tether. One of the places behind is Galaxy Digital, another player who has one foot in the traditional world of finance and one feet in the world of encryption. After these two giants, there is still related encryption, LEDN and Coinbase. The last husband reaches some extent to return to the exchanges of exchange between these ten. However, LEDN and Coinbase have shrinking their loans from the previous summit of the year 2024. Most of the elements of the radar are still under the radar.

Despite their efforts, exactly the latest numbers reveal how to withdraw the CEFI model. This was part of the encryption industry that was actually very vital, and it was part of growing very quickly if you looked at it from any angle, whether it was revenues or profit or just a number of people who were serving it. After that, we had a group of these large prominent collapses that occurred in 2022 and 2023.

What is the size of the encryption lending market? Nobody really knew

Now we are doing

Based on public deposit reviews, bankruptcy documents, and voluntary disclosure of active lenders, the size of a joint CEFI loan in Ye 2024 was 11.2 billion dollars, a decrease of 68 % from 2022 ATH from 34.8 billion dollars pic.twitter.com/sdceehxfom

Alex Thorn (Intangiblecoins) April 14, 2025

This reduction has opened the door to Defi to confirm itself as the new basis for Crypto lending. On the contrary, the Defi lending market has grown steadily and is now carrying a leader. At combining, the total suspended encryption loans across each of CEFI and Defi platforms is estimated at about $ 30 billion. However, more than 60 % of this amount-more than $ 18 billion-is now calculated by Defi Protocols, according to data collected from analyzes on the series and lending information.

The compact lending platforms, compound, makerdao, and non -central financing (Defi) have benefited from something very essential: their transparency. By virtue of the general Blockchains head, these lending protocols are simultaneously open to everyone, in real time, to find out what is happening inside them. Unlike traditional banks and even many central business models in Crypto, Defi lending protocols do not work in a black box. This is a professional. (Some may argue that it is an essential necessity for any action that is called a non -central.)

Decentralization is not a magic stick that protects you from stupid decisions. At the same time, it is not quite clear that allowing everyone to see what is happening exactly in the lending protocol at any specific moment is a good business model.

In addition, when the guaranteed debt sites (CDPS) of Stablecoin protocols such as Dai from Makerdao are included, the total amount of credit provided on the chain by decentralized systems grows to more than 35 billion dollars. This in turn strengthens and also confirms the emergence of decentralized systems as a source of credit on the chain.

The CDP -backed Stablecoins is the increasing demand for leverage tools and tools on the chain that does not depend on central intermediaries. These tools are especially popular among the users applying for Defi (decentralized financing) and liquidity requests, such as Daos (decentralized independent organizations). They prefer them because they provide ways to obtain liquid assets without the risk of a tip for a tip that may become non -liquid or insolvent.

Transparency

One of the most stubborn differences between Defi and CEFI is transparency. Defi is open by nature, with data and smart contracts visible to all. CEFI, in contrast to it, is very transparent. Many data available on CEFI lending is from voluntary disclosure, general files, and bankruptcy procedures supervised by the court. For this reason, it is very difficult for anyone to get an accurate and updated image of risks and exposure.

The encryption community requests more transparency and criteria for the best scrutiny than central platforms. The collapse of companies such as Celsius, Blockfi and Voyageer last year increased from this request only. Meanwhile, Defi platforms are seen as more flexible because their operations are open and transparent. If the Defi platform is working “under pressure”, it is likely that the community will know about it and will be able to respond quickly. Defi is mainly based on the community and proves the user.

The future of encoding has become more and more about decentralization. The risk transparency, software enforcement, and the ability to authorize the architectural engineering of users and institutions who want to reach encryption credit markets. These three items are not just an example within the DEFI space; They are largely what DEFI is used and reliable.

By the end of 2025, CEFI will be an expired concept – it will disappear, while Defi will be present, perhaps with more users more than now, and the number of encryption users will be generally also. CEFI was so fast that it seems to be the first commercial model of history that was placed in a coffin by a federal organizational agency.

Disclosure: This is not a trading or investment advice. Always make your search before buying any encrypted currency or investing in any services.

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