Fintech may be hitting its stride, especially for those rich in cryptocurrency holdings. As it is, interest rates for collateralized loans on decentralized finance (DeFi) protocols like market leader Aave V4 (AAVE) are lower than current 30-year fixed mortgage rates and most auto loans.
The one saving grace for traditional finance is that most people don’t own cryptocurrencies, or know how to obtain a loan through a DeFi company. Singling out that segment of the blockchain market, DeFi lending applications held roughly 59% of the crypto-collateralized lending market by second quarter of 2025, up from 54% in the first quarter. Most of this taking away from crypto lending on centralized finance exchanges, opposed to the bank on Main Street.
This year, DeFi has surpassed centralized financed (CeFi) loans offered up on the blockchain. CeFi has imploded.
When new CeFi giants like Celsius and BlockFi failed in 2022, users fled to the decentralized players.
For Crypto Holders, DeFi Lending Rates Are Now Lower Than A 30-Year Mortgage or Car Loan
