Crypto Lenders Hold Nearly $60B of Assets as New Wave of DeFi Adoption Sweeps In: Report
The post Crypto Lenders Hold Nearly $60B of Assets as New Wave of DeFi Adoption Sweeps In: Report appeared on BitcoinEthereumNews.com. There’s a quiet transformation underway in decentralized finance (DeFi). While DeFi’s previous bull market was driven by eye-watering—and dubious—yields and speculative frenzy, the current growth has been powered by the sector becoming a backend financial layer for user-facing apps and increasing institutional participation, according to a Wednesday report by analytics firm Artemis and on-chain yield platform Vaults.fyi. The total value locked (TVL) on top DeFi lending protocols—including Aave, Euler, Spark and Morpho—has surged past $50 billion and approaching $60 billion, growing 60% over the past year, the report showed. This growth has been driven by rapid institutionalization and increasingly sophisticated risk management tools. “These are not merely yield platforms; they are evolving into modular financial networks undergoing rapid institutionalization,” the authors said. Lending deposits on top DeFi protocols (Artemis) The ‘DeFi mullet’ One of the key trend recently the report highlighted is user-facing applications quietly embedding DeFi infrastructure in the backend to offer yield or loans. These features are abstracted away from users creating a more seamless experience, a trend often called the “DeFi mullet:” fintech front-end, DeFi backend, the report said. Coinbase users, for instance, can borrow against their bitcoin holdings powered by DeFi lender Morpho’s backend infrastructure. More than $300 million in loans have already originated via this integration as of this month, the report pointed out. Bitget Wallet’s integration with lending protocol Aave offers a 5% yield on USDC and USDT holdings across chains without leaving the crypto wallet app. PayPal is also doing something similar with its PYUSD stablecoin, offering yields near 3.7% to PayPal and Venmo wallet users, albeit without the DeFi element. The report said crypto-friendly fintech firms with large user bases, such as Robinhood or Revolut, may also adopt this strategy and offer services like stablecoin credit lines and asset-backed loans through DeFi…
The post Crypto Lenders Hold Nearly $60B of Assets as New Wave of DeFi Adoption Sweeps In: Report appeared on BitcoinEthereumNews.com.
There’s a quiet transformation underway in decentralized finance (DeFi). While DeFi’s previous bull market was driven by eye-watering—and dubious—yields and speculative frenzy, the current growth has been powered by the sector becoming a backend financial layer for user-facing apps and increasing institutional participation, according to a Wednesday report by analytics firm Artemis and on-chain yield platform Vaults.fyi. The total value locked (TVL) on top DeFi lending protocols—including Aave, Euler, Spark and Morpho—has surged past $50 billion and approaching $60 billion, growing 60% over the past year, the report showed. This growth has been driven by rapid institutionalization and increasingly sophisticated risk management tools. “These are not merely yield platforms; they are evolving into modular financial networks undergoing rapid institutionalization,” the authors said. Lending deposits on top DeFi protocols (Artemis) The ‘DeFi mullet’ One of the key trend recently the report highlighted is user-facing applications quietly embedding DeFi infrastructure in the backend to offer yield or loans. These features are abstracted away from users creating a more seamless experience, a trend often called the “DeFi mullet:” fintech front-end, DeFi backend, the report said. Coinbase users, for instance, can borrow against their bitcoin holdings powered by DeFi lender Morpho’s backend infrastructure. More than $300 million in loans have already originated via this integration as of this month, the report pointed out. Bitget Wallet’s integration with lending protocol Aave offers a 5% yield on USDC and USDT holdings across chains without leaving the crypto wallet app. PayPal is also doing something similar with its PYUSD stablecoin, offering yields near 3.7% to PayPal and Venmo wallet users, albeit without the DeFi element. The report said crypto-friendly fintech firms with large user bases, such as Robinhood or Revolut, may also adopt this strategy and offer services like stablecoin credit lines and asset-backed loans through DeFi…
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