A recent report by Galaxy highlighted that decentralized applications had nearly double the amount in outstanding loans compared to Tether and two other companies in the crypto lending market at the end of 2024. The market size, excluding collateralized debt position stablecoins, was around $30 billion, but increased to $36.5 billion when including CDP stablecoins. CeFi lending for institutions has three major categories targeting institutional borrowers, while DeFi lending has seen a 959% increase since 2022, reaching $19.1 billion in open borrows in the fourth quarter of 2024. The growth in DeFi reflects a preference for trust-minimized infrastructure and operational stability during volatile market conditions.

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