In 2022, the crypto lending market experienced major events such as the collapse of LUNA/UST, the bankruptcy of Three Arrows Capital, and the collapse of FTX, which led to the closure of many major lenders. However, this period exposed problems in the market structure and provided a blueprint for building a healthier ecosystem in the future. Craig Birchall, head of product at Membrane, pointed out that the market is starting to show signs of recovery in 2024. The launch of Bitcoin ETFs in the US has fueled the expansion of institutional lenders. For example, Coinbase Prime saw loan volumes increase 75% quarter-over-quarter in 2024, Ledn reported a 400% increase in institutional lending, and Membrane saw loan bookings triple the total for all of 2023. Birchall stressed that risk management has become a top priority, with detailed due diligence and asset verification becoming the standard. Over-secured lending has gone mainstream, with unsecured lending restricted to well-capitalised borrowers. New entrants such as Swiss banks and Traditional Financial Institution Groups are driving the market, while custodians and innovation platforms are also expanding products and tools. Birchall believes that the continued growth of the crypto lending market depends on a balance of innovation and risk management to build a more robust and efficient market.