## Crypto Lending Market Contracts, DeFi Bucks the Trend Recent analysis indicates a significant contraction in the cryptocurrency lending market. According to a Galaxy Digital report highlighted by Coin Telegraph, the market size in Q4 2024 reached $36.5 billion, a 43% decrease from its 2021 peak of $64.4 billion. The decline is attributed to fewer lenders and reduced activity from individual, corporate, and fund borrowers. Increased regulatory scrutiny and the collapse of major centralized lending platforms likely contributed to this downturn. However, Decentralized Finance (DeFi) lending platforms are demonstrating resilience. DeFi loan volumes have rebounded strongly from a low of $1.8 billion in Q4 2022 to $19.1 billion by the end of 2024. This growth suggests a shift towards more transparent and permissionless lending protocols within the crypto space. The rise of DeFi lending highlights a continued demand for crypto-backed loans, but with a preference for decentralized solutions. ```