Active crypto loans fell to $20.4B from $35.3B year-to-date, signaling reduced leverage despite remaining above 2022-2023 lows.
Active crypto loans across major lending protocols declined 42.3% year-to-date, dropping from $35.3 billion to $20.4 billion. The contraction reflects a normalization of leverage after a period of elevated borrowing activity.
Despite the sharp decline, loan volumes remain significantly higher than bear-market levels observed in 2022-2023. Aave leads the sector with 46.5% market share, holding approximately $9.5 billion in active loans, followed by Morpho ($3.5 billion) and Spark ($1.6 billion).
The sector’s size still exceeds that of the previous market cycle, suggesting sustained but moderated demand for crypto-backed lending.