The reasons for the rise in lending backed by cryptocurrency have become known.

Comparing the market volumes for January - October of this year and last year. A sharp rise in activity was noted by analysts in July - October. An important difference in the market structure compared to 2024: the popularity of on-chain lending, whose share exceeded 66.9%. The volume of lending in the decentralized finance segment (DeFi) grew by 55% - to $41 billion.

A significant portion of decentralized applications encourages clients to take out loans or hold debts for points or rewards, making the use of credit advantageous. The rise in cryptocurrency prices has increased the value of bail-in, allowing borrowers to take out more without additional risks, explained Galaxy Research.

Lending on centralized platforms (CeFi) rose by 37% to $24.4 billion. Against this backdrop, the popularity of stablecoins USDT and USDC as bail-in assets has increased. The company Tether remains the dominant lender in CeFi, controlling nearly 60% of tracked loans, analysts clarified.

Earlier, Bloomberg reported that the American banking corporation JPMorgan Chase plans to allow major clients to use bitcoin and ether as bail-in for loans by the end of the year.