Crypto News – 2023 has seen a resurgence of blockchain-based loans, with active tokenized private credit valued at $582 million, a startling 128% rise from the previous year.
Blockchain-Based Loans Increases, Doubling Compared to 2022
According to statistics from real-world asset loan tracker RWA.xyz, the market is still far from its record of $1.5 billion in June 2022, but the rebound may indicate that, in light of recent interest rate increases, borrowers are searching for blockchain-based alternatives to traditional bankers.
According to December 1 research by NerdWallet, lenders have been offering small business bank loan interest rates ranging from 5.75% to 11.91%, while the current average percentage rate for blockchain-based credit procedures is 9.64%.
Centrifuge Crypto Holds First Place in terms of Active Loans
With $255 million in active loans, Ethereum-based Centrifuge now holds over 43% of the market, up 203% from $84 million at the beginning of 2023. With $143 million in ongoing loans, Goldfinch is the second-largest blockchain credit protocol, followed by Maple with $103 million.
The research indicates that the consumer ($197.7 million) and automotive ($186.8 million) sectors are the top sources of blockchain-based loan applicants, followed by fintech, real estate, carbon credit, and cryptocurrency trading. The $506 million active loan market is just roughly 0.3% the size of the $1.6 trillion traditional private credit market, notwithstanding the recent increase.
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