The centralized finance (CeFi) lending sector has staged a remarkable comeback, with aggregate outstanding loans climbing to nearly $25 billion by the end of Q3 2025, according to Galaxy Research. This marks the highest level since Q1 2022 and represents a 200% growth since early 2024, though it remains below the peak of $37 billion seen during the previous bull cycle.
The recovery signals a profound shift from the post-contagion period that followed the collapses of major lenders like Celsius, Voyager, BlockFi, and Genesis, which were heavily impacted by the FTX downfall in November 2022. Tether now dominates the market with $14.6 billion in open loans, capturing about 60% share, followed by Nexo at $2 billion and Galaxy at $1.8 billion. Other active lenders include Maple, Two Prime, Coinbase, Ledn, Sygnum, Unchained, and Arch.
Alex Thorn, head of research at Galaxy, emphasized the increased transparency, stating he is "proud of the chart and the transparency of its contributors," highlighting a "big change from prior market cycles." The current landscape is defined by controlled growth, conservative risk frameworks, full collateralization, and verifiable data, contrasting sharply with the opaque and over-leveraged practices of the past.
In parallel, decentralized finance (DeFi) lending reached a new all-time high of $41 billion in Q3, and combined CeFi and DeFi lending totaled $65.4 billion at quarter-end, setting a record for crypto-collateralized borrows. The sustained expansion for five consecutive quarters suggests that institutional lending demand has returned, paving the way for a more stable and transparent financial ecosystem.
