CryptoSlate analyzed that while the outstanding balance of commercial and industrial (C&I) loans from U.S. commercial banks reached $2.89 trillion, the active loan balance on Aave was only $10.9 billion, accounting for merely 0.38% of the banking sector. The media outlet stated, "Aave operates on an overcollateralized structure that automatically liquidates cryptocurrency collateral, whereas corporate loans are primarily based on cash flow assessments such as sales and margins, making them structurally different products. In an optimistic scenario, on-chain private credit could grow to $100 billion to $300 billion (3.5% to 10.4% of the C&I market), but without supporting regulatory and assessment infrastructure, it will remain at $5 billion to $20 billion (less than 0.7%)."
