DeFi Takes the Helm: On-Chain Lending Dominates Crypto Lending Market

A significant shift is occurring within the cryptocurrency lending landscape, with decentralized finance (DeFi) taking the lead from centralized finance (CeFi). Latest data by Sentora (formerly IntoTheBlock) reveals that on-chain credit has become the dominant form of crypto lending. Liquid staking tokens (LSTs), real-world asset-backed tokens (RWAs), and principal tokens like Pendle PTs are now among the most common forms of collateral. This marks a dramatic turnaround from the CeFi-heavy market of recent years.