State of Crypto Lending

Current state of crypto lending.

TradFi to DeFi

Consumer lending in traditional finance is a $4T market, almost three times larger than the $1.5T institutional lending market, however, DeFi-powered under-collateralized consumer loans aren’t happening in DeFi yet. There are only 0.2% of Ethereum wallets that have interacted with a DeFi lender (Aave, Maker, Compound). Over-collateralized DeFi loans have fuelled exponential growth (350 new DeFi loans per day globally), but caters to a narrow customer segment, primarily traders. Mainstream borrowers represent a far greater market opportunity i.e. 197,000 new personal loans per day globally in Tradifi but they demand lower collateral requirements.