Research Summary

The report provides a comprehensive analysis of the lending industry in the crypto space over the last 365 days. The report highlights that despite various setbacks in the crypto industry, the number of lending protocols has increased by 71.7%. However, total borrowed has decreased by 67.8%, indicating a shrink in adoption. Aave, JustLend, and Compound are the top three protocols in terms of Total Value Locked (TVL), with Aave leading at $5.9B. The report also reveals that 45 lending projects raised funds in the last four quarters, with CeFi lending raising 60.1% more than non-CeFi lending.

Actionable Insights

  • Monitor the top protocols: Aave, JustLend, and Compound are leading in terms of TVL. Monitoring their performance can provide insights into the lending market.
  • Understand the dynamics of CeFi and non-CeFi lending: CeFi lending raised 60.1% more funds than non-CeFi lending in the last four quarters, despite the larger number of non-CeFi projects. This indicates a potential preference for CeFi lending in the investment community.
  • Consider the impact of crypto market setbacks: Despite an increase in the number of lending protocols, total borrowed has decreased by 67.8%. This suggests that market setbacks may be impacting the adoption of lending protocols.

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