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Welcome to The Mining Pod! Today, Will and Colin dissect Galaxy's report on the crypto lending market. The crypto lending sector crashed 80% after peaking at $64.4 billion in Q4 2021 following failures at Genesis, BlockFi, and Celsius which fissured the lending landscape during bitcoin’s 2022 bear market. Since then, DeFi lending has surged 959% to $19.1 billion and has now overtaken centralized lending. Plus, Tether emerged from the bear market as the dominant player in centralized lending, why ASIC-backed loans haven’t recovered from 2021’s go-go days, and why bitcoin miners will increasingly leverage their HODL to access financing.
# Notes:
- Crypto lending market: $36.5B in Q4 2024
- DeFi lending grew 959% since Q4 2022
- Tether controls ~70% of centralized lending
- ASIC-backed loans collapsed in 2022
- Large miners beginning Bitcoin lending operations
- Interest rates lower in DeFi vs. OTC markets
00:00 Start
03:34 Why does lending matter?
05:56 Lender types
07:02 DeFi loan market
08:30 Lending market growth
24:47 Future of the lending market
25:41 Lava
27:02 AAVE
28:22 Interest rates
31:54 Predictions: Miners using BTC as collateral
33:22 Predictions: Rates converging with tradfi
35:10 Predictions: Retail lending products
