2024

Galaxy

DeFi

Bitcoin

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<p><strong>Key Points:</strong></p>  
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 <li><em>Bitcoin’s historic rise past $100,000 has fueled a resurgence in the crypto lending sector, with DeFi platforms driving nearly $31 billion in lending activity this year.</em></li>  
 <li><em>Decentralized finance apps dominate lending, offering safer, overcollateralized loans, while centralized providers manage significantly smaller volumes.</em></li> 
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<h5 class="wp-block-heading">According to <em><a href="https://www.bloomberg.com/news/articles/2024-12-06/crypto-lenders-emerge-from-the-ashes-of-last-speculative-bubble" target="_blank" rel="noopener noreferrer nofollow">Bloomberg</a></em>, interest in the crypto lending sector has resurged since Bitcoin's price topped $100,000 for the first time in a remarkable revival that has boosted confidence in the cryptocurrency markets, particularly in decentralized finance applications.</h5>  
<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2024/12/On_Black_67_2000.jpg" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2024/12/On_Black_67_2000-1024x576.jpg" alt="Crypto Lending Sector Revives After Bitcoin Hits $100,000 Milestone" class="wp-image-295790"></a>
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<p class="has-background" style="background-color:#222222">Read more: <a href="https://coincu.com/199950-bitget-to-launch-new-product/" target="_blank" rel="noopener noreferrer nofollow">Bitget To Launch New Product To Expand On Crypto Lending Sector</a></p>  
<h2 class="wp-block-heading" id="bitcoin-milestone-fuels-crypto-lending-revival">Bitcoin Milestone Fuels Crypto Lending Revival</h2>  
<p>The milestone is happening at a time when confidence is growing over the adoption of cryptocurrencies at large due to President-elect Donald Trump's promises of favorable regulation and the introduction of crypto exchange-traded funds in the U.S.</p>  
<p>Lending activity almost tripled in the first nine months of 2024 from the same period last year to $36.8 billion, though that's still well off the heights of 2021.</p>  
<p>As per Galaxy Research, this recovery has been catalyzed by DeFi applications, which have managed to process as much as $31 billion worth of lending this year, compared to just $5.8 billion managed by centralized lending institutions. DeFi often brings borrowers and lenders into a marketplace for the purpose of over-collateralized lending and is, quite often, seen as a much safer place to secure lending when compared with the risks attached to traditional, centralized lenders.</p>  
<h2 class="wp-block-heading" id="crypto-lending-sector-rebounds-amid-regulatory-uncertainty">Crypto Lending Sector Rebounds Amid Regulatory Uncertainty</h2>  
<p>Lending volumes today stand at about a 50% share of their all-time peak in 2021. While regulatory ambiguity plays a critical role in applying brakes for traditional banks in the lending scene, it also leaves space for crypto lenders to fill gaps.</p>  
<p>Those include the likes of <a href="https://coincu.com/270581-genesis-creditor-repayments-4-billion-in-crypto/" target="_blank" rel="noopener noreferrer nofollow">Genesis</a> and <a href="https://coincu.com/258448-blockfi-shut-down-will-take-place-in-may/" target="_blank" rel="noopener noreferrer nofollow">BlockFi</a>, among the leading players who showed an uptrend in 2021 throughout the bull run, only to face turmoil when the industry began to fall apart in subsequent years.</p>  
<p>The industry continues to feel the impact of the past. <a href="https://coincu.com/202869-alex-mashinsky-pleaded-not-to-fraud-freed-40m/" target="_blank" rel="noopener noreferrer nofollow">Alex Mashinsky</a>, the co-founder of Celsius Network, filed guilty allegations on behalf of fraud related to the incidents surrounding the insolvency of his firm in 2022, which left creditors out-of-pocket for more than $3 billion.</p>  
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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</figure>  <a href="https://coincu.com/?p=295752" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Crypto Lending Sector Revives After Bitcoin Hits $100,000 Milestone

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