Crypto Lending Plummets: $43 Billion Shrunk as CeFi Crisis Deepens

A significant decline in the crypto lending market was observed at the end of 2024, according to a recent report by Galaxy Digital. Total outstanding loans dropped to $36.5 billion, representing a stark drop from the peak of $64.4 billion reached in late 2021. This dramatic contraction is attributed to the failure of major centralized finance (CeFi) lenders during the 2022-2023 market downturn. Major players like Genesis, Celsius Network, BlockFi, and Voyager filed for bankruptcy as cryptocurrency prices plummeted and liquidity dwindled.