Decentralized Finance (DeFi) lending outstrips Traditional Finance (CeFi) as cryptocurrency loans reach unprecedented record highs
In the world of cryptocurrencies, the month of July 2025 has been a busy one. Here's a rundown of some key developments:
According to a report by Galaxy Research, the dollar value of open loans on decentralized finance (DeFi) applications increased by a significant $7.84 billion. This growth is a testament to the growing popularity of DeFi lending.
In the centralized lending sector, Tether is leading the pack with a 57.02% market share, holding $10.14 billion in open loans as of June 30. The top three companies in the centralized lending market, however, remain unspecified in the provided search results.
The report also notes that costs are improving, which, along with increasing crypto prices, further drives borrowing activity in the centralized lending sector.
In the DeFi space, Ethereum continues to dominate, accounting for 78.22% of all DeFi lending deposits as of July 31. The network's increasing adoption of Pendle principal tokens on Euler Finance and Aave is driving this growth.
Notably, the value of outstanding CeFi loans reached $17.78 billion as of June 30, representing a 14.66% growth quarter over quarter. In the month between June 30 and July 31, assets borrowed on DeFi lending applications increased by 33.94%, translating to $6.2 billion in additional borrows. The value of deposits for DeFi lending continues to increase as well, with a 33.91% growth since June 30 to now reach $79.22 billion by July 31.
Ethereum saw a 42.73% growth, while layer-2 networks saw the second fastest growth at 24.71%. However, the privacy-focused cryptocurrency Monero is facing a growing double-spending threat after a block reorganization.
In other news, Solana creators earned $19.3 Million from Pump.Fun streams, and Solana received a $1.1 Billion investment from Pantera, with a target of $750K for Bitcoin.
On the exchange front, the UAE M2 crypto exchange has changed its business model, and Santander's Openbank is rolling out Bitcoin, Ether, and more for European users.
In the world of exchange-traded funds (ETFs), XRP and Dogecoin ETFs are set to launch this week. Nvidia's stock dropped by 3% due to accusations of breaching China's anti-monopoly law.
Unfortunately, a user lost $1 Million USDC to a MEV bot after a mistaken transaction, and hackers seized the FBI's botnet takedown targets and built a stronger cyberweapon from them.
Lastly, Pi Network is beginning the final Testnet1 upgrade ahead of its mainnet transition. BYD lost $45 Billion in value amid rising doubts over China's EV dominance. Larry Ellison, a well-known figure, is involved with OpenAI, Paramount, Warner Bros., and TikTok simultaneously.
This whirlwind of events underscores the dynamic nature of the cryptocurrency market, where growth, innovation, and challenges coexist. Stay tuned for more updates in the coming days.
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