The crypto lending market reached a record high in the third quarter, with total loans issued amounting to $73.6 billion, surpassing the previous record of $69.4 billion set in Q4 2021. According to Galaxy Digital Research, this figure is nearly three times the size of Q1 2024. Despite this growth, concerns over a potential bear market have intensified as Bitcoin recently experienced a decline of over 20%. Crypto lending is considered a key indicator of market sentiment. Retail investors often use it to leverage and amplify returns, while institutional investors and hedge funds utilize it to meet short-term liquidity needs.