Decentralized finance (DeFi) lending protocols are experiencing explosive growth since 2025. According to Binance Research, total value locked (TVL) in related protocols has increased by more than 72% this year, from $53 billion to over $127 billion. This analysis suggests that the DeFi lending ecosystem is rapidly emerging as institutional investors actively adopt stablecoins and tokenized assets (digitalization of real-world assets).
At the heart of this upward trend is a smart contract-based, non-institutional lending model. P2P lending, leveraging blockchain technology, offers the advantage of allowing anyone to deposit assets or borrow money without the intervention of banks or intermediaries. In particular, the proliferation of collateralized real assets (RWAs) has enhanced stability, leading to a surge in institutional capital inflows from pension funds and hedge funds.
The market is also seeing increasing participation from individuals and businesses seeking interest income. However, some experts warn that focusing solely on yield can be dangerous. The CEO of Sharplink Gaming pointed out that "crypto companies that solely pursue interest income face the greatest risk."
Meanwhile, US financial regulators have also taken proactive measures. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement today declaring their commitment to jointly addressing the spot cryptocurrency trading market and began establishing a cooperative framework. This move is seen as a response to the shift in regulatory policy since President Trump took office. Clarifying regulations is expected to play a positive role in restoring confidence in the DeFi lending market.
It's noteworthy that the DeFi lending market is broadening its reach with the real economy and breaking down barriers with institutional asset management. If institutions and technologies harmonize to complement the established financial system, the scope of decentralized finance is expected to expand even further.
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