Crypto Lending Hits $73.6B Record as DeFi Captures Two-Thirds of Market

Crypto-collateralized lending reached an all-time precocious of $73.59 cardinal astatine the extremity of Q3 2025, according to Galaxy Research.

The fig surpasses the erstwhile highest of $69.37 cardinal from Q4 2021 by 6.09%, with onchain lending present holding 66.9% marketplace stock compared to 48.6% 4 years ago.

The marketplace expanded by $20.46 cardinal successful Q3, representing 38.5% quarter-over-quarter growth, the study says.

The determination toward on-chain lending represents a structural displacement from the 2021 cycle, which relied connected uncollateralized recognition and opaque lending practices.

DeFi lending applications grew to $40.99 cardinal successful Q3, expanding $14.52 cardinal quarter-over-quarter.

Bitcoin served arsenic a superior collateral plus crossed protocols. The 54.84% maturation complaint gave DeFi apps a 55.7% stock of the full lending market.

Within onchain borrowing, lending applications present relationship for much than 80% of activity, with CDP stablecoins (assets similar DAI that are minted by locking up crypto arsenic collateral) holding conscionable 16%, according to the Galaxy report.

Galaxy identified 3 superior factors driving DeFi lending expansion. Points farming and airdrop programs incentivize users to support borrows contempt marketplace volatility.

Improved collateral assets specified arsenic Pendle Principal Tokens alteration businesslike looping strategies. Cryptocurrency terms appreciation done Q3 allowed users to get much against existing collateral.

The Aave DeFi lending app captured important marketplace stock connected a web identified successful the study arsenic the Plasma blockchain.

Galaxy information indicates the concatenation attracted much than $3 cardinal successful outstanding borrows wrong 5 weeks of launch. Aave holds 68.8% of the chain’s lending market, which makes it Aave’s second-largest deployment aft Ethereum mainnet, according to the report.

Centralized concern lending reached $24.37 cardinal arsenic of Sept. 30, increasing 37.11% from the erstwhile quarter.

CeFi lenders shifted to afloat collateralized loans lone aft the 2022 recognition implosions. Stablecoin issuer Tether maintained $14.6 cardinal successful secured loans, according to its Q3 transparency report.

Tether holds a 59.91% stock of the CeFi lending marketplace tracked by Galaxy Research, up 2.89 percent points from Q2.

The apical 3 lenders (Tether, Nexo with $2.04 billion, and Galaxy with $1.8 billion) power 75.66% of tracked CeFi lending.

Galaxy noted that surviving CeFi lenders person shifted toward afloat collateralization and nationalist reporting arsenic they question organization capitalist funding.

Shortly aft Q3 ended, the futures marketplace experienced its largest liquidation lawsuit connected Oct. 10, 2025. More than $19 cardinal successful perpetual futures positions were liquidated crossed exchanges.