Galaxy Research: on-chain crypto-collateralized lending reached an all-time high of $73.59B at end of Q3 2025 (up from $69.37B in Q4 2021). On-chain lending holds 66.9% market share after a $20.46B Q3 expansion (38.5% QoQ). DeFi lending grew to $40.99B (55.7% share of on-chain lending); lending apps are >80% of on-chain borrowing while CDP stablecoins are 16%. Drivers cited: points-farming/airdrop incentives, improved collateral primitives (e.g., Pendle Principal Tokens) enabling efficient looping, and crypto price appreciation. Aave captured 68.8% of lending on the new Plasma chain with >$3B outstanding borrows in five weeks. CeFi lending totaled $24.37B; Tether holds $14.6B (59.91% of tracked CeFi lending) and, with Nexo ($2.04B) and Galaxy ($1.8B), controls 75.66% of tracked CeFi lending. The report notes surviving CeFi lenders moved to full collateralization and public reporting. Shortly after Q3, perpetual futures liquidations exceeded $19B on Oct. 10, 2025.

Facts: total crypto-collateralized lending reached $73.59B (record); on-chain lending now 66.9% market share; DeFi lending $40.99B and >80% of on-chain borrowing is via lending apps; Aave has 68.8% share on the new Plasma chain with >$3B borrows; CeFi lending concentrated (Tether $14.6B, Nexo $2.04B, Galaxy $1.8B); a >$19B perpetual futures liquidation event occurred Oct. 10, 2025. These facts support a moderately positive view for DeFi lending growth but also indicate short-term volatility from large liquidations.