Industry data confirms strong growth in on-chain lending and staking.
The crypto industry has survived various waves of innovation, from the rise of Bitcoin and Ethereum to decentralized finance taking over, NFTs, and the anticipated surge of spot exchange-traded funds (ETFs). But according to Bitwise CEO Hunter Horsley, the next big shift might not come from these areas, but it could come from crypto credit and borrowing.
Speaking on the evolving role of digital assets in traditional capital markets, Horsley projected that credit markets built on crypto and tokenized assets will see explosive growth in the next few years. He also suggested that this transformation could come through within the next 6-12 months and it will reshape how crypto market works.
Horsley in his post on X (formerly known as Twitter) highlighted two major forces that might be converging in the near future:
The first reason is the size of the crypto market. As of now, there’s almost $4 trillion worth of cryptocurrency in circulation worldwide and as we can see the number is growing day by day. Due to this growth, many investors do not want to sell their coins, but they still need cash sometimes.
According to the Bitwise CEO, borrowing against crypto makes more sense because instead of selling coins, people can instead use them as collateral for loans. In this way, the investors get the money that they want, and their investment in crypto also remains intact. This entire process is also tax-friendly, because selling tokens usually leads to higher taxes for the investors.
The second reason is the huge value of traditional assets. Just the U.S. stock market alone is worth around $60 trillion. As this concept of tokenization grows (meaning stocks, bonds, and other real-world assets get put on blockchains), it will create new ways for people to borrow money.
Horsley explained that even someone who owns just $7,000 worth of stock could soon use it as collateral to borrow, directly on the blockchain. This situation becomes important because it has the capacity to open up credit access to small investors who normally do not have enough collateral or connections to big financial institutions. In short, it will make borrowing easier and more inclusive.
Recent research and market data add weight to what the Bitwise CEO is predicting. The numbers show that borrowing and staking in crypto are indeed growing fast, even though there are some ups and downs along the way.
For example, according to Galaxy.com, in Q2 2025, crypto lending hit $53 billion, which was an increase of $11.4 billion (which is about 27%) in just one quarter. This growth has come from DeFi platforms like Aave and Compound) and CeFi platforms. By mid-2025, borrowing on these platforms had reached record highs.
If you look at staking, it is also booming. According to fireblocks, by mid-2025, more than $100 billion worth of crypto was staked, all because of big investors entering the market and blockchain networks upgrading their system.
Other reports show that platforms like Aave, Compound, and Ethereum’s own staking system are proving how mainstream crypto credit and staking are becoming. All of this evidence indicates that credit, borrowing, and staking will be major forces in shaping the future of crypto which is in line with what the Bitwise CEO is predicting.
The road ahead will not be easy. Rules for tokenized stocks and bonds are still not clear, and there are concerns regarding safety in crypto lending, especially after many of the lending platforms like Celsius, Voyager, and BlockFi collapsed during the 2022-2023 downturn.
Despite there being challenges and significant risks, Bitwise CEO is optimistic and thinks that the world is ready for a steady growth ahead.
