As per Coindesk, crypto-collateralized borrowing hit a record $73.6 billion in Q3 2025, with DeFi lending surging 55% to $41 billion. Onchain lending now accounts for 66.9% of total crypto debt, up from 48.6% in 2021. Centralized lenders also saw a 37% increase to $24.4 billion, though still below their 2022 peak. Galaxy Research noted a shift toward collateralized models and institutional capital, with Tether dominating CeFi lending at nearly 60% of tracked loans. The quarter also saw a $19 billion liquidation event, though Galaxy claims it did not reflect systemic weakness.
Crypto Leverage Surges to $73.6 Billion in Q3, Driven by DeFi Growth
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