Ah, the intoxicating aroma of decentralized finance! 🥂 How it waltzes through the quarters, leaving poor CeFi to choke on its dust. Galaxy Digital, those astute chroniclers of the crypto carnival, have unveiled a report as dazzling as a firefly’s derrière on a moonless night. DeFi lending, that mischievous minx, has pirouetted to a new zenith in Q3, its dollar-denominated loans swelling by a ludicrous $14.52 billion-a 54.84% leap, no less-to a total of $40.99 billion. Bravo, bravo! 👏
When one tosses CeFi’s meager offerings into the pot, the total crypto-collateralized loans reach a staggering $65.37 billion, a $21.12 billion surge from the previous quarter. A new pinnacle, surpassing the old record by a cool $11.93 billion. How quaint! 🤑 Yet, one mustn’t forget the potential for double-counting-those sly CeFi entities borrowing through DeFi protocols, only to lend off-chain. Ah, the tangled web we weave! 🕸️
DeFi’s Extravaganza: A Symphony of Greed and Genius
Galaxy Research, with its nose perpetually in the air, attributes this frenzy to the siren songs of “points farming” and airdrop incentives. Users, those greedy gourmands, cling to their loans like barnacles to a shipwreck, even as markets tremble. And let us not overlook the Pendle PTs, those clever collateral assets, allowing stablecoin strategies to loop with the grace of a prima ballerina. Crypto prices rise? Borrowing capacity soars! Collateral values appreciate? The dance continues! 💃
Yet, a word of caution from our wise analysts: double-counting lurks in the shadows, as CeFi and DeFi entwine like star-crossed lovers. Separating on-chain and off-chain exposures? A task as futile as herding cats. 🐱
DeFi’s dominance, meanwhile, has reached a stratospheric 62.71% by Q3’s end, leaving CeFi to wallow in its 33.12% share. CDP-backed stablecoins? A mere 11.18%, down 547 basis points. On-chain lending, with DeFi and CDP stablecoins in the lead, claims 66.88% of the market-a hair above its previous high. Resilience? Oh, DeFi has it in spades, even as markets throw tantrums. Outstanding borrows hit $43.82 billion on October 7, only to retreat a mere 11.55% by month’s end. A standing ovation, if you please! 🎭
The Crypto Ballet Continues: A Q4 Pas de Deux
In Q4, the drama intensified. Ripple, ever the impresario, partnered with Immunefi to fortify the XRPL Lending Protocol, launching an “Attackathon”-a spectacle of Web3 security researchers stress-testing the system. How delightfully absurd! 🤹♂️ Tether, not to be outdone, invested in Ledn, a Bitcoin-backed lending platform, in a bid to woo institutional adoption. Self-custody? Financial resilience? Oh, the theatrics never cease! 🎪
And so, the crypto ballet twirls on, a mélange of greed, genius, and sheer audacity. DeFi, that enfant terrible, reigns supreme, while CeFi clings to its fading glory. What a spectacle! What a farce! 🌪️💸
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2025-11-24 01:50