The post Crypto lending DAO tokens miss rally train as protocols double 2021 bull market growth appeared on BitcoinEthereumNews.com.

Crypto lending is one of the hottest growth sectors in DeFi, doubling its activity since the 2021 bull market. However, there is limited interest in lending DAO tokens.  Crypto lending has evolved since 2021, doubling in value since the peak of the previous bull market. In total, lending protocols hold over $46B in active loans, up from around $20B at the peak of the market in 2021.  Crypto lending is more diverse in 2025, but there is limited interest in lending project tokens. | Source: Token Terminal Aave still has a major share in lending during the current cycle. The main difference is that Curve Finance has mostly divested its loans and has become one of the minor projects. Currently, Aave and Morpho have taken the lead.  The crypto lending landscape is more diverse, with smaller projects managing to carve out a niche. Lending was also accelerated by the growth of stablecoins, where some protocols minted their own assets. For lending projects, improved measures against liquidations and the bullish direction of the crypto market meant the sector achieved a robust recovery after the years-long bear market.  Demand for lending means a steady inflow of fees. Major protocols produce $40M in weekly fees, with $5.28M in revenues. Crypto lending projects are still highly dependent on the Ethereum ecosystem, with ETH widely used for collateral. The total value locked in lending protocols is over $92B, while Ethereum locks in $56B in its top lending apps.  Crypto lending tokens are lagging Despite the success of crypto lending as an indispensable aspect of DeFi, the tokens of lending protocols are not a hot narrative.  Aave remains the top protocol, but the AAVE native token only expanded to $291. The asset is still 50% down from its all-time peak in 2021.  Lending tokens are now…

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Filed under: News - @ October 7, 2025 2:23 pm