AI · CoinDesk
A large $1 trillion hidden market is waiting to be unlocked in bitcoin, confirms new report
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Crypto lender Ledn says the consumer bitcoin-backed loan market could grow nearly 300-fold to as much as $1 trillion within the next decade, as demand for borrowing against digital assets far outpaces actual usage.
Key facts
- Crypto lender Ledn says the consumer bitcoin-backed loan market could grow nearly 300-fold to as much as $1 trillion within the next decade, as demand for borrowing against digital assets far
- Ledn estimates the bitcoin-backed consumer lending market currently stands at roughly $3 billion
- The sector, however, still carries the scars of the 2022 crypto credit collapse, when major lenders including Celsius Network, Voyager Digital and BlockFi either filed for bankruptcy or were forced
- The forecast accompanied new research conducted by consumer insights firm Protocol Theory, which surveyed 1,244 cryptocurrency holders across the U.S. and Australia between February and March
Summary
Ledn forecasts the consumer bitcoin-backed lending market could grow from roughly $3 billion today to as much as $1 trillion within 10 years. A new survey found 88% of crypto holders would consider borrowing against their assets, while only 14% currently do. The biggest barriers to adoption are concerns over volatility, liquidation risk and regulatory uncertainty. The forecast accompanied new research conducted by consumer insights firm Protocol Theory, which surveyed 1,244 cryptocurrency holders across the U.S. and Australia between February and March this year.