The post DeFi lending rises to a three-year high appeared on BitcoinEthereumNews.com.

DeFi active loans have expanded to a three-year peak, marking the almost complete recovery of lending from the 2022 crash. Over $24B in active loans points to improved confidence in the crypto market.  DeFi kept growing to new peaks in 2025, with lending as one of the most in-demand activities. Active loans climbed to a new high for the year to date, with over $24B in active lending. The borrowing rate nearly doubled in less than a year, driven by demand for stablecoin liquidity and DEX trading.  Aave dominated the DeFi lending growth, displacing Curve as the leader from the previous bull cycle. | Source: IntoTheBlock The growth in lending shows more trust in the collaterals, as well as improved tools for avoiding liquidations. Most of the lending happens on big protocols, using blue chip assets as collateral. NFT lending is not part of the trend and never recovered, losing 97% of its volumes.  Active loans have expanded continuously with no drawdowns since January 23, rising even during the March and April market slump. The current trend is expected to continue, raising loans to an even higher range.  Ethereum supports DeFi lending While some of the lending protocols saw liquidations of ETH loans, the market regained its footing and is rebuilding ETH liquidity. After the latest market recovery, liquidatable positions for ETH collaterals start at $1,500. ETH currently has $1B in liquidation positions, with other tokens also growing their influence. Lending also supports the Ethereum ecosystem, preserving the legacy status of the chain. Solana and other chains have much smaller lending markets. However, Kamino Lend is breaking out of the pack, with over $2B in collaterals and $1.5B in active loans. The Base ecosystem is also growing, with over $1B in active loans.  The relative stability of ETH above $2,500…

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Filed under: News - @ June 13, 2025 5:23 pm