Tether has rapidly ascend over the recovering crypto lending market. Just last month, they announced record off-the-charts $13 billion in expected profits for 2024. This massive increase in profitability has been fueled, at least in part, by the growing popularity of stablecoins. Tether, Galaxy, and Ledn have combined to make a significant impact on the centralized finance (CeFi) lending market. IEc After a rocky few years in the market, this shift towards transit-oriented development is a welcome one.
As of the end of the fourth quarter of 2024, Tether alone held 27% of the total crypto lending market. Indeed, according to a recent report from Galaxy, Tether has completely taken over the CeFi lending market. Combined with Galaxy and Ledn, Tether has an astounding 88.6% market share. Meanwhile, the total value of outstanding CeFi borrows climbed to $11.2 billion by the end of Q4.
The crypto lending market saw a peak of $64.4 billion in the fourth quarter of 2021. At its peak in the first quarter of 2022, borrowing on centralized platforms (CeFi) was an eye-popping $34.8 billion. Then it dropped to just $6.4 billion in the third quarter of 2023. The total crypto lending market was estimated at $36.5 billion as of the end of Q4.
“DeFi borrowing has experienced a stronger recovery than that of CeFi lending,”
The unprecedented combination of collapsing crypto prices with simultaneous liquidity shortages created truly extraordinary challenges for the market in 2022 and 2023. These are among the factors that led to the collapse of various centralized finance (CeFi) lenders.
In further Big News, Tether is still in discussions to incorporate with one of the Big Four accounting firms. Specifically they are working to see a performance audit of their capital reserves. Information about which firm will be doing that audit and when exactly that will happen are still not public.
