11/19/2025
181 words
1 min read
Crypto Leverage Hits Record High in Q3 as DeFi Dominance Reshapes Market Structure: Galaxy
Overview
In the third quarter, onchain lending contributed to a significant increase in crypto-collateralized debt, reaching a record high. This development indicates a shift in the market structure, as the leverage that supports the crypto market is now more securely backed compared to the previous cycle.
What Happened
During the last quarter, the amount of crypto-collateralized debt surged to a new peak, driven primarily by the growth of onchain lending. This rise in leverage is notable as it reflects an evolution in how the crypto market operates. Unlike the previous cycle, the current leverage is better collateralized, suggesting a more stable foundation for market activities.
Impact on the crypto market
- The increase in crypto-collateralized debt signals growing confidence among market participants.
- Enhanced collateralization may provide greater stability within the crypto market.
- The shift towards better collateralized leverage could influence investment strategies and risk management.
- This trend may attract more institutional investors looking for secure investment opportunities.
- The rise of onchain lending underscores the increasing importance of decentralized finance (DeFi) in shaping market dynamics.
Updated: 11/19/2025, 9:18:22 PM
