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Analysts have noted a rise in the tokenized private loan sector to $582 million this year, marking a 128% increase compared to 2022. This growth is attributed to the fact that the average annual percentage rate (APR) for blockchain loans is considerably lower than that of cash loans.
As per data from tracker RWA.xyz, the total asset value of tokenized private loans reached $581.5 million as of December 18, more than doubling last year’s figures.
The primary factor driving growth in the blockchain loan market is the increasing interest rates set by traditional financial institutions. For instance, the APR for blockchain loan protocols is 9.64%, whereas lenders provide bank loans for small businesses at an average APR of 11.91%, according to NerdWallet.
Data analysis indicates that blockchain loans total $4.5 billion across 1,804 transactions. The Ethereum-based protocol Centrifuge represents over 43% of these loans, with transactions via Centrifuge rising from $84 million to $255 million over the year. Other significant blockchain lending protocols include Goldfinch and Maple, with active loans of $143 million and $103 million, respectively.
The primary cryptocurrencies utilized for blockchain loans are stablecoins:
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The most prominent regions in the blockchain loan market are:
- Kenya in terms of total borrowed amount ($73.8 million);
- Mexico regarding the frequency of blockchain loans (over 67,000);
- USA in terms of average loan size ($20 million).
It is important to highlight that despite the robust growth of the blockchain loan sector, the market remains significantly below its peak, which was recorded at $1.5 billion in June 2022. Additionally, the current size of the blockchain loan market constitutes only about 0.3% of the traditional private loan market.
A group of DeFi developers has recently introduced a decentralized liquidity marketplace that facilitates collateral-free lending. Furthermore, TransUnion, one of the largest credit bureaus in the U.S., has begun offering credit scoring services to users of DeFi protocols and Web3 projects.
Сообщение Blockchain Loan Market to Surpass $0.58 Billion in 2023 появились сначала на CoinsPaid Media.
