Crypto Lending Market Suffers Significant Decline, but DeFi Shows Resilience

The crypto lending market experienced a dramatic downturn in Q4 2024, falling by 43% to $36.5 billion, according to a recent report by Galaxy Research. This decline follows the collapse of prominent lending platforms during the 2022-2023 bear market. However, the DeFi sector has remained resilient and rebounded strongly. Despite this contraction, loan book value for DeFi lending applications reached $19.1 billion at the end of Q4 2024, representing a 959% increase since the bear market bottom in 2024.