Part 4/7:
By Q4 2024, CFI lending, which had dropped from $34.8 billion to $6.4 billion, began to recover, climbing to $11.2 billion, although still trailing 68% behind its all-time high.
Notably, during the same period, DeFi lending witnessed a remarkable increase, surging from a low of $1.8 billion to $19.1 billion by the end of 2024—a staggering 959% growth. DeFi's resilience can be attributed to its decentralized nature, allowing it to operate without succumbing to the same bankruptcy pitfalls as CFI institutions.