According to a recent report from Galaxy Digital’s research team, DeFi lending achieved unprecedented success in the third quarter, with the dollar value of outstanding loans on decentralized finance (DeFi) applications rising by $14.52 billion, or 54.84%, to a total of $40.99 billion by the end of Q3. When including centralized finance (CeFi) lenders, the total amount of crypto-collateralized loans surged to $65.37 billion in Q3, marking an increase of $21.12 billion from the previous quarter and setting a new all-time high after surpassing the former peak of $53.44 billion in Q4 2021 by $11.93 billion. The report highlights several factors contributing to this growth, including the rise of points farming and airdrop incentive programs that encourage users to maintain their loans even during market fluctuations. The increasing popularity of advanced collateral assets, such as Pendle PTs, has enabled users to implement stablecoin strategies at advantageous loan-to-value ratios, while rising crypto asset prices have enhanced borrowing capacity through appreciating collateral values. However, the report also cautions about the potential for double-counting in the combined CeFi and DeFi lending figures, as some CeFi institutions borrow via DeFi protocols before lending those assets to off-chain clients, complicating the distinction between on-chain and off-chain exposures. Amid this expanding DeFi landscape, the sector’s lending dominance over CeFi increased to a record high of 62.71% by the end of Q3 2025, up from 59.83% in Q2 2025 and exceeding the previous peak of 61.99% in Q4 2024. Furthermore, while the crypto-collateralized segment of collateral debt position (CDP) stablecoin supply dipped by $658 million, or 7.4%, quarter-over-quarter, the report again referenced possible double-counting concerning CeFi entities that mint CDP stablecoins for loans to off-chain borrowers. Overall, total crypto-collateralized lending grew by $20.46 billion in Q3, achieving an all-time high of $73.59 billion. By the end of the quarter, DeFi lending applications captured 55.7% of the market share, a gain of 588 basis points from Q2 2025, while CeFi venues held 33.12%, a decline of 36 basis points, and CDP-backed stablecoin supply represented 11.18%, down 547 basis points. Notably, the combined share of on-chain lending platforms through DeFi lending apps and CDP stablecoins reached 66.88%, slightly surpassing the previous all-time high of 66.86% set in Q4 2024. The report further emphasized the resilience of DeFi lending despite market volatility, as outstanding borrowings peaked at a record daily high of $43.82 billion on October 7, before easing by just 11.55% to $38.76 billion by October 31. In Q4, key industry players focused on enhancing the lending ecosystem, such as Ripple’s partnership with Immunefi in October to improve security for the XRPL Lending Protocol, along with the launch of a global \u201cAttackathon\u201d aimed at testing the system prior to a validator vote. Additionally, Tether, a leading stablecoin issuer, made a strategic investment in Ledn, a Bitcoin-backed lending platform, to bolster self-custody, financial resilience, and institutional adoption.<\/p>\n","protected":false},"excerpt":{"rendered":"
According to a recent report from Galaxy Digital’s research team, DeFi lending achieved unprecedented success in the third quarter, with the dollar value of outstanding loans on decentralized finance (DeFi) applications rising by $14.52 billion, or 54.84%, to a total of $40.99 billion by the end of Q3. When including centralized finance (CeFi) lenders, the […]<\/p>\n","protected":false},"author":2,"featured_media":5398,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[],"class_list":["post-5399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-1"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"ms","enabled_languages":["en","de","ja","vi","ms"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"de":{"title":false,"content":false,"excerpt":false},"ja":{"title":false,"content":false,"excerpt":false},"vi":{"title":false,"content":false,"excerpt":false},"ms":{"title":false,"content":false,"excerpt":false}}},"rttpg_featured_image_url":{"full":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3.png",1024,1024,false],"landscape":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3.png",1024,1024,false],"portraits":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3.png",1024,1024,false],"thumbnail":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3-150x150.png",150,150,true],"medium":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3-300x300.png",300,300,true],"large":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3.png",1024,1024,false],"1536x1536":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3.png",1024,1024,false],"2048x2048":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3.png",1024,1024,false],"blog-thumb":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3-530x250.png",530,250,true],"blog-full":["https:\/\/globalcryptoguru.com\/wp-content\/uploads\/2025\/11\/news_image_1-3-1024x450.png",1024,450,true]},"rttpg_author":{"display_name":"MUHAMMAD ISMAIL","author_link":"https:\/\/globalcryptoguru.com\/ms\/author\/ai-news-automation\/"},"rttpg_comment":0,"rttpg_category":"News 1<\/a>","rttpg_excerpt":"According to a recent report from Galaxy Digital’s research team, DeFi lending achieved unprecedented success in the third quarter, with the dollar value of outstanding loans on decentralized finance (DeFi) applications rising by $14.52 billion, or 54.84%, to a total of $40.99 billion by the end of Q3. When including centralized finance (CeFi) lenders, the…","_links":{"self":[{"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/posts\/5399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/comments?post=5399"}],"version-history":[{"count":1,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/posts\/5399\/revisions"}],"predecessor-version":[{"id":5400,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/posts\/5399\/revisions\/5400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/media\/5398"}],"wp:attachment":[{"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/media?parent=5399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/categories?post=5399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalcryptoguru.com\/ms\/wp-json\/wp\/v2\/tags?post=5399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}