DeFi Lending Skyrocket in Q3, Crushing CeFi: Galaxy Reports

DeFi lending reached a new record in the third quarter, according to a new report from Galaxy Digital’s research team, which found that the dollar-denominated value of outstanding loans on decentralized finance (DeFi) applications rose by $14.52 billion, or 54.84%, to $40.99 billion at the end of Q3. When combined with centralized finance (CeFi) lenders, total outstanding crypto-collateralized loans rose to $65.37 billion in Q3, up $21.12 billion from the previous quarter. This is a new all-time high after surpassing the earlier peak of $53.44 billion from Q4 2021 by $11.93 billion. DeFi Lending Explodes to Record Highs Galaxy Research, in its latest report, attributed the continued expansion of DeFi lending to several factors. This includes the growth of “points farming” and airdrop incentive programs, which encourage users to keep loans open even under market stress. Increasing use of improved collateral assets such as Pendle PTs, which allow users to...

https://cryptopotato.com/defi-lending-skyrocket-in-q3-crushing-cefi-galaxy-reports/