The institution-focused company Genesis saw YoY growth of 245% in their outstanding loans. Our estimation shows that over 400,000 BTC could already be in use as collateral in the lending market today.
The lending market for bitcoin is young but rapidly growing. The first companies in this sector launched their offerings only four to five years ago. This has now become a billion-dollar industry and an essential part of the overall bitcoin market.
However, this is not surprising when we see how massive the lending activity in traditional markets is. Collateralized loans are seen everywhere, from mortgages and cash loans to the enormous repo market with overnight lending.