Part 5/7:
As of Q4 2024, DeFi lending, excluding CDP stable coins, dominated the market, accounting for 63% of the total crypto lending landscape. Interestingly, the report notes that CDP stable coins are losing their stronghold as DeFi systems evolve, improving loan terms and increasing liquidity.
Moreover, venture investments into crypto lending have fluctuated significantly, with only 2.8% of total VC investments between Q1 2022 and Q4 2024 channeled toward lending platforms. After reaching a peak in mid-2022, funding fell dramatically, indicating investor wariness in an unstable market.