Crypto Loans Hit Record $73.6B as Market Splits Between CeFi and DeFi

Crypto loans reached an all-time high of $73.6B in Q3 2025, and their mechanism is surprisingly straightforward.

Borrowers deposit cryptocurrency as collateral, receive a loan in stablecoins or cash, repay with interest, and get their crypto back without selling it.

This method lets holders borrow against their assets while avoiding capital gains taxes and keeping exposure to future price gains.

The market has split into two camps: centralized platforms (CeFi) like Nexo and Ledn, and decentralized protocols (DeFi) like Aave and Compound, with DeFi now commanding roughly two-thirds of all lending activity.