Carson Cook and James Roth from Membrane Labs discussed the resurgence of crypto lending on the Empire podcast, outlining the lessons learned from previous cycles and the role custodians play in market growth. They noted that while past cycles saw failures in crypto lending, there's optimism for the current cycle, anticipating increased loan originations similar to figures from 2021. Cook emphasized that crypto lending operates on momentum rather than fundamentals, positing that a bullish market could significantly increase demand for leverage and lending. He stated that custodians are key to unlocking the industry’s potential, encouraging users to move their assets from cold storage into active lending environments. However, he highlighted that regulatory clarity remains a crucial obstacle in fully realizing this potential. Despite the challenges, both experts expressed a hopeful view for the market, indicating a possible influx of funds and safety in lending practices as the sector evolves.

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