Researchers at CoinGecko have found that private credit protocols are focusing 42% of their loans on emerging markets, specifically in the automotive sector.

Private credit protocols such as Centrifuge and Goldfinch are allocating more than 42% of their outstanding loans to car financing, totaling over $196 million in active loans, according to a recent research report by CoinGecko. The increase in auto loans, which have surpassed $168 million across 60 loans in the past year, is primarily driven by borrowers in emerging markets like Africa, Southeast Asia, Central America, and South America.

“The growth in the automotive loan sector has outpaced that of fintech and real estate debts, which now only make up 19% and 9% of the total,” analysts noted.

According to CoinGecko, out of 840 loans extended to the real estate and crypto trading sectors, only 10% remain active, with most either repaid or defaulted. The crypto trading sector alone experienced 13 loan defaults following the Terra/Three Arrows Capital collapse.

Data from CoinGecko shows that Nigeria leads in active loans by value, with 14 active loans as of Feb. 1, followed by Kenya with 12 active loans and the Philippines with 11 active loans. In total, over 40 loans originate from Africa, making up 40.8% of the 103 accounted loans. These loans target small and medium-sized enterprises, carbon projects, automotive projects, fintech, and consumer loans.

If you’re interested in learning more about blockchain-powered private loans and the latest trends in the cryptocurrency market, stay tuned for more updates on Global Crypto News.

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