The centralized finance (CeFi) crypto lending sector has reached a significant milestone, with its total market size climbing to $25 billion in the third quarter. This represents the highest valuation for the sector in over three years, according to analysis from Galaxy Digital. Alex Thorn, Head of Firmwide Research at Galaxy, noted that the composition of today’s market is fundamentally different from its previous peak. The current landscape is increasingly dominated by established, regulated institutions that prioritize transparency and robust risk management frameworks. This shift marks a maturation of the crypto lending space, moving beyond its earlier phases toward greater institutional participation and stability. The resurgence to a $25 billion valuation underscores renewed confidence and capital allocation into crypto yield products, albeit within a more stringent operational environment. The report suggests this trend towards transparency is becoming a core competitive advantage and a baseline expectation for major participants and their clients in the current market cycle.
