Crypto Lending Drops 43% From 2021 Peak as DeFi Borrowing Jumps 959% Since 2022 Low
The size of the crypto lending market has fallen by over 43% from its 2021 high of $64.4 billion, dropping to $36.5 billion by the end of the fourth quarter of 2024, according to a report from Galaxy Digital published on April 14. This decline began in 2022, following the collapse of several major centralized finance (CeFi) lenders including Genesis, Celsius Network, BlockFi, and Voyager. These firms filed for bankruptcy as crypto prices fell, leading to a significant reduction in both the supply and demand for crypto loans.
The impact on CeFi lending was severe. At its peak in 2022, CeFi lending had a combined book size of $34.8 billion. By the end of 2024, this had dropped to $11.2 billion—a 68% decline. According to Galaxy…
