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2 clusters · 5 sources · 4 days · First seen · Last updated

Crypto-collateralized lending market trends

Overview

The crypto-collateralized lending market has shown divergent trends between individual platform growth and broader market contraction.

Coinbase reported significant growth in its specific services, with outstanding balances for crypto-collateralized loans reaching approximately $2.3 billion. This activity is driven by users utilizing assets like Bitcoin as collateral to borrow USD-pegged stablecoins via the Base Layer 2 network and the Morpho protocol. To increase predictability, Coinbase introduced fixed-rate loans through ‘Morpho Midnight’.

In contrast, the wider crypto-collateralized lending market experienced a 16.78% decline in the second quarter, falling to $56.16 billion. This represents a decrease from a $78.69 billion peak in Q3 2025. During this period, Decentralized Finance (DeFi) lending saw a sharper contraction of 27.61% compared to a 9.62% decrease in Centralized Finance (CeFi), allowing CeFi to hold a larger market share than DeFi for the first time since Q3 2023.

Entities

Morpho · Aave · Galaxy Research · DefiLlama · Coinbase

Timeline

  1. [BUSINESS] 3 sources
    Crypto-collateralized lending market declines to $56.16 billion in Q2

    Crypto-collateralized lending fell 16.78% to $56.16 billion in Q2, with DeFi lending declining more sharply than CeFi.

  2. [BUSINESS] 2 sources
    Coinbase crypto-collateralized loan balances reach $2.3 billion

    Coinbase's crypto-collateralized loan services have reached $2.3 billion in outstanding balances, with users leveraging Bitcoin via the Base network to access liquidity without selling assets.

Sources

blockchainseoul.kr · blockonomi.com · pymnts.com · tokenpost.com · tokenpost.kr