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DeFi lending remains significantly smaller than lending via digital asset platforms (for now)

Garrick Hileman

Decoding DeFi dissonance

Establishing generally agreed upon definitions and taxonomies has been a frequent challenge in the cryptocurrency space.

Lending has been DeFi’s biggest application to date

According to DeFi Pulse, the “lending” segment is the largest single segment of DeFi at $3.7 billion in size. This represents just over half of the total $7.1 billion in value currently locked in DeFi.²

Segmenting the crypto lending market

Crypto borrowing and lending markets existed well before DeFi.

DeFi lending is still smaller than DALP lending

Amid all the DeFi hype we thought it would be useful to compare the market size of DeFi lending with DALP lending.

  • Bitfinex
  • Blockchain.com
  • BlockFi
  • Celsius Network
  • Genesis Capital
  • Nexo

The future of crypto lending

For nearly a decade now software has been eating the world. It is tempting to think that DeFi lending protocols will soon surpass and perhaps even eliminate digital asset lending platforms. However, that is unlikely to happen in the near-term.