THE MINING POD: Inside the $37B Crypto Lending Market

May 13, 2025

Colin and Will dive into the striking shifts in the crypto lending market, noting a dramatic 80% crash and the explosive 959% growth of DeFi lending since 2022. They highlight Tether's dominance, controlling around 70% of centralized lending, and explore the decline of ASIC-backed loans. The duo discusses how Bitcoin miners are adapting by leveraging their holdings for financing while predicting a potential rise in Bitcoin neobanks and the integration of crypto lending with traditional finance. The landscape is changing; don't miss the insights!

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INSIGHT

Lending Market's Importance

The crypto lending market is foundational for both Bitcoin’s financial ecosystem and miners.
Lending markets enable collateral-backed loans, yielding cash or interest, crucial for market health.

INSIGHT

DeFi Lending Surges Past Centralized

DeFi lending surged 959% from late 2022 to late 2024, becoming bigger than centralized lending.
DeFi platforms offer more censorship resistance and transparency for lending.

INSIGHT

Centralized Lending Collapse Causes

The centralized lending market peaked with a few major players dominating, which led to systemic risks.
Mismanagement and interconnected loans caused a cascading collapse in 2021-2022.

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Colin and Will break down Galaxy's report on crypto’s $36.5 billion lending market.

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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

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