Bitcoin lending is experiencing a comeback due to enhanced risk management measures. The failures of Celsius and BlockFi have led to new practices like overcollateralization to reduce risks. The current lending environment focuses on experienced investors who demand better security rather than high yields.
As of Q1 2025, the Bitcoin lending market has grown to 13.51 billion USD, showing a 9.24% increase. This growth reflects a shift in investor focus from yield farming to liquidity access. Nevertheless, the inherent volatility of Bitcoin remains a risk for all lending models.
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