Crypto Loans Rebound to $581M in 2023, Reflecting 55%+ Growth

• Private credit experienced a notable surge of 55% this year amid elevated interest rates.
• Although crypto loans have risen to around $581 million, they remain below last year’s peak of nearly $1.5 billion.
• Blockchain protocols charge less than 10% for crypto loans, while traditional providers seek double-digit rates.

Crypto-based loans have experienced a notable rebound of over 55% in 2023 as companies increasingly turn to blockchain-based financing amid elevated interest rates. The development was captured in a recent report by Bloomberg, noting that the resurgence marks a partial recovery from the crypto sector’s 2022 downturn.

Citing data from RWA.xyz, a market intelligence platform monitoring on-chain protocols, the report noted that active private loans on blockchains had risen to $408 million by November 28. By press time, that figure had grown to approximately $581 million, per the latest numbers on RWA.xyz’s web app. The figure reflected the substantial growth since the beginning of the year.

Meanwhile, the new record for crypto-based lending remains below the peak of nearly $1.5 billion witnessed last June. Besides, it represents only a fracti…

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