The centralized finance (CeFi) lending sector has experienced an unexpected resurgence, with recent data indicating that the market has reached a remarkable $25 billion, the highest level since early 2022. This significant growth was reported by Galaxy Research, which highlighted that the total outstanding loans across leading CeFi platforms surged nearly to this milestone by the end of the third quarter of 2025.
This resurgence marks a stark contrast to the post-crisis phase following the collapse of major firms like Celsius, Voyager, and BlockFi. The data reveals a clear trajectory: lending volumes skyrocketed past $35 billion in early 2021 before plummeting throughout 2022. However, the sector is now entering a new era characterized by steady growth, heightened transparency, and increased institutional involvement.
Leading Players in the Revived Lending Market
The latest rankings from the CeFi lending landscape indicate that Tether has secured the top position among lenders in 2025, followed closely by Nexo in second place and Galaxy taking the third spot. Other notable platforms actively participating in this revitalized market include Maple, Two Prime, Coinbase, Ledn, Sygnum, Unchained, and Arch. This shift emphasizes a new industry dynamic, where firms with robust liquidity and conservative risk management strategies are now at the forefront, contrasting sharply with the less regulated lending environment of 2020 and 2021.
Market Resilience and Structural Changes
The commentary accompanying the data underscores a commitment to transparency and accuracy, which were major shortcomings in previous cycles when loan portfolios were often opaque and over-leveraged. In 2025, lenders are focused on offering clearer reporting practices and verifiable exposure breakdowns, which indicates a maturing market.
The visual data also illustrates a gradual recovery through 2023 and 2024, with modest loan book sizes, culminating in a powerful breakout starting in early 2025. This upswing has been primarily driven by high-confidence lenders like Tether and Nexo. Importantly, the absence of legacy players from the previous bull run, such as Celsius and BlockFi, highlights the significant structural changes taking place within CeFi.
With lending volumes increasing for five consecutive quarters and nearing pre-crisis levels, it appears that CeFi has transitioned into a phase defined by stability rather than aggressive yield promises. Should this trend persist into the fourth quarter, the sector may well exceed early-2022 lending levels, signaling a robust return of institutional lending demand in the cryptocurrency space, nearly three years after the previous crisis.
