TL;DR
- The value of loans on DeFi protocols grew 55% in Q3, surpassing the 2021 peak by over $4 billion.
- Plasma, Bitfinex’s new blockchain ecosystem, and Aave’s multi-chain expansion are the main growth drivers.
- Institutional onchain credit returns to the market, capturing over 50% of total crypto-collateralized credit.
The decentralized lending (DeFi) segment is performing stronger than ever. DL News shared a new report from Galaxy Digital revealing that, in the third quarter of the year, the value of loans in DeFi protocols in Q3 soared by 55%, reaching an all-time high of $41 billion, a figure that surpasses the 2021 peak by more than $4 billion.
The scenario painted by the report is optimistic, highlighting a decisive realignment of crypto credit, moving away from centralized lenders and heading towards automated and transparent onchain systems. In fact, DeFi lending applications captured more than 50% of the total crypto-collateralized lending market, valued at $74 billion, the largest market share they have ever achieved.
Galaxy emphasizes that traditional trading desks, funds, and corporations are returning to the market, as counterparty risk has normalized and liquidity has returned to top-tier borrowers.
Key Protocols Driving the Wave
Galaxy Digital recognizes three key drivers behind this surge: the Plasma platform, Aave’s multi-channel expansion, and the resurgence of Maple, the protocol focused on institutional lending.
According to DefiLlama, Plasma, the new blockchain from Tether’s sister company (Bitfinex), was one of the biggest surprises of the quarter, rapidly scaling to become the eighth largest blockchain by DeFi deposits.
Plasma has witnessed investors borrowing over $3 billion in the last five weeks, with Aave capturing nearly 70% of all loans there. This success positions Plasma as Aave’s second-largest deployment, surpassing Arbitrum.
For their part, Aave’s v3 markets have seen strong expansion across networks like Base and Scroll, with an increase in demand for stablecoins and blue-chip collateral like Bitcoin and Ethereum. Maple also recorded its best quarter ever, expanding its loan book by $630 million. These data confirm that the 2025 cycle fundamentally differs from the speculative and opaque credit boom of 2021, with DeFi lending protocols in Q3 establishing a new era of financial maturity.
