Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Crypto Leverage Hits Record High i
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Crypto Leverage Hits Record High i
Crypto Leverage Hits Record High in Q3 as DeFi Dominance Reshapes Market Structure: Galaxy
Crypto Leverage Hits Record High in Q3 as DeFi Dominance Reshapes Market Structure: Galaxy
Onchain lending drove crypto-collateralized debt to a new peak in last quarter, but the leverage underpinning the market is now better collateralized than during the previous cycle.
By Oliver Knight, AI Boost|Edited by Stephen Alpher
Nov 19, 2025, 7:15 p.m.
Crypto leverage hits record high in Q3 (Creative Commons)
What to know:
- Onchain lending accounts for 66.9% of all crypto-collateralized borrowing, with DeFi loans hitting a record $41 billion, boosted by incentives, new collateral types and rapid growth on emerging chains like Plasma, according to a report from Galaxy Digital.
- Centralized lenders grew outstanding loans 37% to $24.4 billion, but with far tighter collateral requirements; Tether controls nearly 60% of tracked CeFi lending.
- The $19 billion Oct. 10 liquidation cascade was the largest in history, but Galaxy says it reflected exchange risk systems, not a buildup of systemic credit risk.
Crypto-collateralized borrowing surged to a record $73.6 billion in the third quarter, marking the sector’s most levered quarter on record, yet the composition of that leverage looks significantly healthier than during the 2021–22 cycle.
According to Galaxy Research, the sharp rise was driven overwhelmingly by onchain lending, which now represents 66.9% of all crypto-collateralized debt, up from 48.6% at the previous peak four years ago.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sign me up
DeFi lending alone jumped 55% to an all-time high of $41 billion, supported by points-driven user incentives and improved collateral types such as Pendle Principal Tokens.
Centralized lenders also saw a rebound as borrows grew 37% to $24.4 billion, though the market remains a third smaller than its 2022 peak.
Centralized lending graph (Galaxy Research)
Survivors of the last cycle have largely abandoned uncollateralized lending, turning toward full-collateral models as they seek institutional capital or public listings. Tether remains the dominant CeFi lender, holding nearly 60% of tracked loans.
The quarter also saw a decisive shift within DeFi itself, with lending apps now capturing more than 80% of the onchain market, and CDP-backed stablecoins shrinking to 16%. New chain deployments, including Aave and Fluid on Plasma, helped fuel activity, with Plasma attracting more than $3 billion in borrows within five weeks of launch.
It's worth noting that shortly after the end of Q3, a leverage-induced wipeout occurred resulting in more than $19 billion worth of liquidations, the largest single-day cascade in crypto futures history.
Still, Galaxy's report claims the liquidation event did not reflect systemic credit weakness: most positions were mechanically de-risked as exchanges’ auto-deleveraging systems kicked in.
Meanwhile, corporate digital-asset treasury (DAT) strategies continue to rely on leverage, with more than $12 billion in outstanding debt tied to crypto-acquiring firms. Total industry debt, including DAT issuance, hit a record $86.3 billion.
The data suggests crypto leverage is rising again, but on firmer, more transparent footing, with collateralized structures replacing the opaque, unbacked credit that fueled the last boom-and-bust cycle.
LeverageDerivativesDeFi
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
Protocol Research: GoPlus Security
Commissioned byGoPlus
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
View Full Report
More For You
Bitcoin Slips Back Below $90K — Crypto Correction Now Ranks Among Worst Since 2017, K33 Says
After a rare spot of outperformance on Tuesday, bitcoin has resumed sliding, with one analyst eyeing $84,000–$86,000 as potential local bottom.
What to know:
- Bitcoin fell below $90,000, losing 4.2% during early U.S. trading hours on Wednesday, while ether dropped 6% to under $3,000.
- Crypto-related equities more than mirrored the decline, with Strategy (MSTR), BitMine (BMNR) and Circle (CRCL) booking 8%-9% selloffs.
- Bitcoin’s current slide from its early October record at $126,000 ranks among the steepest 43-day drawdowns since 2017, K33's research head said.
Read full story
Latest Crypto News
New Hampshire Awaits Bitcoin Bond Buyer to Get First State Effort Rolling
AI Agents Need Identity and Zero-Knowledge Proofs Are the Solution
Bitcoin Slips Back Below $90K — Crypto Correction Now Ranks Among Worst Since 2017, K33 Says
Stella's XLM Token Breaks Key $0.25 Support as Altcoins Suffer Continued Drawdown
Coinbase Debuts DEX Trading in Brazil as ‘Everything App’ Vision Grows
HBAR Slides 0.5% to $0.146 as Technical Support Crumbles
Top Stories
Bitcoin Slips Back Below $90K — Crypto Correction Now Ranks Among Worst Since 2017, K33 Says
New Hampshire Awaits Bitcoin Bond Buyer to Get First State Effort Rolling
Senate Banking Panel Advances FDIC's Travis Hill for Wider Confirmation Vote
Winklevoss-Backed Cypherpunk Buys $18M More Zcash, Bringing Holdings to $150M
Bitcoin Market Watch: Nvidia Earnings, Fed Minutes and Payrolls to Set the Tone
Crypto ETFs Enter Maturity Phase as IRS and SEC Actions Drive Rapid Expansion of Products
Market Opportunity
DeFi Price(DEFI)
$0.000605
$0.000605$0.000605
USD
DeFi (DEFI) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
The Contrarian Truth: Why Bitcoin and Ethereum Prices Defy Social Media Sentiment
BitcoinWorld The Contrarian Truth: Why Bitcoin and Ethereum Prices Defy Social Media Sentiment Have you ever noticed that when everyone on social media is screaming
Share
bitcoinworld2025/12/20 07:45
Record instroom Bitcoin-ETF’s – richting $120.000?
Connect met Like-minded Crypto Enthusiasts! Connect op Discord! Check onze Discord De markt voor Bitcoin ETF’s laat wederom een opvallende trend zien. De afgelopen week werd de grootste instroom sinds juli geregistreerd, een ontwikkeling die de aandacht van zowel institutionele als particuliere beleggers trekt. Deze instroom zorgt voor nieuwe speculatie over de vraag of Bitcoin binnenkort de grens van 120.000 dollar kan doorbreken. Laten we dit hieronder nader bekijken. Grootste instroom sinds juli Volgens recente marktgegevens wist de Amerikaanse spot Bitcoin ETF’s een instroom te krijgen ver boven de gemiddelde niveaus van de afgelopen weken. Alleen al op 16 september werd meer dan 290 miljoen dollar netto in deze fondsen gestort. Daarmee markeert dit de zevende opeenvolgende dag met positieve instroom, een duidelijk teken dat institutionele belangstelling opnieuw toeneemt. De grootste bijdrage kwam van BlackRock’s iShares Bitcoin Trust, dat meer dan 200 miljoen dollar stortte. Ook de ETF’s van Fidelity en Ark lieten grote instroom zien. Kortom, de instroom blijft positief. U.S. spot Bitcoin ETFs Ignite with a $553M daily inflow, pushing a four-day streak to $1.7B. Ether ETFs also saw a resurgence with $113M in new funds. #Bitcoin #ETF #ETHhttps://t.co/zZiNqtKSEm — Cryptonews.com (@cryptonews) September 12, 2025 Hoe instroom prijsondersteuning biedt De sterke instroom in Bitcoin ETF’s is meer dan een mijlpaal. Het laat zien hoe de vraag naar Bitcoin groeit vanuit institutionele hoek en dat deze vraag niet voor een keer is, maar structureel is. Omdat de instroom de hoeveelheid nieuw geminde Bitcoin overtreft, ontstaat er een overschot qua vraag dat de prijs positief kan beïnvloeden. Dit verschil tussen aanbod en vraag zorgt ervoor dat het dalende risico wordt beperkt. Wanneer institutionele beleggers via ETF’s posities opbouwen, gebeurt dit bovendien vaak met een langere beleggingshorizon. Dat geeft de markt extra stabiliteit, zeker in een periode waarin onzekerheden rondom rente en macro-economie nog altijd spelen. Signaalfunctie voor beleggers Voor beleggers in de crypto markt hebben deze cijfers een signaalfunctie. Het vertrouwen dat grote institutionele spelers door miljarden te alloceren in gereguleerde beleggingsproducten bevestigt dat Bitcoin steeds meer gekocht wordt in de traditionele financiële wereld. Dit momentum werkt vaak door naar de bredere markt, omdat particuliere beleggers dit zien als bevestiging dat de trend omhoog sterker wordt. Ook technische analyse wijst op een belangrijke fase. De koers van Bitcoin beweegt rond de 118.000 dollar, een weerstandsniveau dat al meerdere keren is getest. Het momentum dat voortkomt uit de ETF instroom kan de kracht geven om dit niveau te doorbreken en een nieuwe fase van prijsstijging richting 120.000 dollar in te luiden. Op korte termijn richting de $120.000? Hoewel niemand met zekerheid kan voorspellen of Bitcoin dit niveau direct zal bereiken, biedt de huidige context sterke aanwijzingen dat de kans aanwezig is. De combinatie van record instroom, institutioneel vertrouwen en een gunstig technisch analyse vormt een krachtige mix. Beleggers doen er goed aan om rekening te houden met de invloed van externe factoren zoals beleidsbesluiten van de Federal Reserve. Best wallet - betrouwbare en anonieme wallet Best wallet - betrouwbare en anonieme wallet Meer dan 60 chains beschikbaar voor alle crypto Vroege toegang tot nieuwe projecten Hoge staking belongingen Lage transactiekosten Best wallet review Koop nu via Best Wallet Let op: cryptocurrency is een zeer volatiele en ongereguleerde investering. Doe je eigen onderzoek. Het bericht Record instroom Bitcoin-ETF’s – richting $120.000? is geschreven door Timo Bruinsel en verscheen als eerst op Bitcoinmagazine.nl.
Share
Coinstats2025/09/18 01:31
Q2 Market Insights: Bitcoin regains dominance in risk-averse environment, ETFs remain critical to market structure
The market will show a downward trend in the short term, and then rebound and set new highs in the second half of the year.
Share
PANews2025/04/28 19:40