Crypto lending increases thanks to decentralized players

Loaning market Krippo is jumped out of 2022 falls, with decentralized platforms that lead to accusation while centralized players struggle to recover lost terrains.

The finding comes from Market analysis report This week from the Cripto Platform Platform Builder Galaxy, which pointed out significant growth in chain loans, even how centralized platforms are struggling to return to their previous tops before bankruptcy of the main player in 2022. Years.

Galaxy, which creates adapted centralized financial and decentralized financial products for investors, trade companies, hedge funds and other institutional clients, reported that decentralized platforms (defined platforms (deferalized platforms (deferalized platforms).

Since the name says, the centralized platform or CEFI lending includes centralized institutions – trade companies, exchanges or crypto banks – which manage detention, VET users and set the Loan Conditions. These lenders often work behind closed systems, requiring confidence in the platform and its risk management.

Defial lending, in contrast, uses smart contracts for borrowing automation and credence on public blocks. Protocols like AAVE, compounds and makerdao enable anyone with the crypt of the wallet to participate, and loans typically exceeded, and users lock the crypto for borrowing stablecoins or other tokens.

Defi runs market growth

In the fourth quarter of 2024. The total value of centralized and decentralized creptic loans was $ 36.5 billion, and decentralized platforms represent more than 60% of that lending to $ 19.1 billion. Galaxy emphasized what she described as a “permitted nature” of definitive credit as a key factor leading market growth. The company said that the largest chain lending applications were continued and during the fall on the market in 2022. years why they have influenced some centralized platforms.

The galaxy attributes resistance to loans for blockin based on blockin, opposing centralized lenders such as Genesis, Celsius Network, Blockfi and Voyager, who faced crises and bankruptcy.

“Unlike the largest (centralized finance), the lenders who bankrupt and no longer operate, the largest application of borrowing and markets were not all forced to close and continue to function,” said the Galaxy report. “This fact is a testament practice of design and risk management of large lending applications and the advantages of algorithmic, supply-based and borrowing.”

According to K4 2024, the lending application was 63% of the total crypted bed, compared to the previous 34% in 2021. Years. This change indicates a growing preference for solutions on a chain in the middle of wider insecurity in the broader market, according to the galaxy.

Crypto lending collection 2022

The $ 36.5 billion credited in 2024. K4 is far from the top of the market in the amount of 64.4 billion in 2021. year before the FTX’s fall, the genies of global capital, whose bankruptcap 2023. Initiated cascading collapse in crypting.

As part of the lawsuit, the New York Lawyer Letitia James last year, the regulators stated that Genesis, twins and digital currency groups covered a loss of billion dollars. The examination affected hundreds of thousands of users, including about 29,000 in New York. The twins eventually returned more than $ 50 million to investors and interrupted their salary program.

This collapse was preceded by two actions by the Securities and Exchange Commission (SEC) against other crypto loans. 7. September 2021. year, Kovanica revealed that the Commission concluded that the CRIPTO was lending to the company announced, so coinbase would contradict the federal securities laws if maintained. Dealing with the threat of application, the coin has been discontinued.

Similarly, in February 2022. years, Sex has been settled with the lending of Blockfi over the alleged failure of the company to register the bids of its retail cryptic product borrowing, blocks for interest (bias), as security. Bloccfi agreed to pay a 50 million dollar punishment in SEC and stops its unregistered offers and sales.

Since these events, Tether became a dominant player in the centralized platform market that offer cryptic lending, a large margin. In K4 2024. years, more than 70% of the centralized platform of the lending market, far competitors. The next largest platform, the galaxy, was less than 10%, according to the platform report.

Legislators, bankers working on the legislation with the crypt

The crypto world has renewed optimism under President Donald Trum, who has multiple personal participation In a variety of cryptocurri and announced last month Strategic Bitcoin Reserve Using the seized Bitcoin held by the vault. Similarly, the US Senate has advanced last month GeniusDraft Law on Creating a Regulatory Framework for StableCoins

A recent market review Amin, Switzerland Finance Institution specializes in CRIPTO banking services, describes these development as a clear sign that “Washington is seriously taken by the lick now.”

However, banks have been more carefully. For example, an American bank association, for example, said last month In a statement for the record members of the Committee for Financial Services for the Genuic Act who pays Stablecoins “potential to significantly not desiintermici-based commercial bank activity such as deposit-taking.”