According to The Kobeissi Letter, the number of employees at nonbank real-estate lenders has dropped by 38% from its 2021 peak, reaching approximately 180,000—near the lowest level this century. In 2024, nonbank lenders dominated the mortgage origination space, with the top three mortgage lenders by originations all being nonbanks (source: The Kobeissi Letter, May 14, 2025). This significant contraction signals tightening credit and liquidity conditions in traditional real estate markets, which can drive increased institutional and retail interest in crypto-based lending platforms and DeFi protocols as alternative financing solutions. Crypto traders should monitor shifts in traditional lending employment and origination trends, as these can indicate broader credit cycles and potential capital flows into digital assets.