Part 4/10:
According to Galaxy's report, the landscape of crypto lending saw notable changes from Q4 2021 to Q1 2025. During its peak, crypto collateralized lending amassed nearly $65 billion before plummeting. Now, the market stands solid at about $39 billion, with roughly $13.5 billion noted in open borrows on centralized finance (CFI) platforms, demonstrating a recovery and a 9% quarter-over-quarter growth.
However, a concerning trend is the concentration of lending services. Tether dominates the CFI lending market with a staggering 65% share, making it imperative for investors to understand the potential risks associated with heavy reliance on a few key players.