Crypto: Digital Asset Lending Reaches $61.7B and Finally Surpasses Its 2021 Record

Numbers are skyrocketing, protocols are exploding, and one wonders: have we already reached the golden age of crypto? Between valuation records, historic loan volumes, and constant innovations, the crypto market seems to be popping champagne week after week. But behind the euphoria, what do the numbers really tell us? And above all, is this rebound healthy and sustainable? We dissected the latest data, and you will see, the devil is in the details.

Is CeFi Coming Back Stronger Than In 2021? Analysis

The dollar wobbles, debt soars… and cryptos break records: centralized finance (CeFi), thought to be down since 2023, rebounds spectacularly. Data from Galaxy Research shows $17.78 billion in CeFi loans by the end of June 2025, a 14.66% increase in one quarter. And this figure doesn’t even consider some heavyweights like DATCO or crypto ETF-backed loans.

Including these additional volumes, $12.74 billion of DATCO debt and between $3 to $6 billion of marginal loans on crypto ETFs, the $34.8 billion 2021 record is surpassed.

Galaxy reminds us that: 

As of June 30, Galaxy Research recorded $17.78 billion in outstanding CeFi loans. This represents a quarterly growth of 14.66%, or $2.27 billion. 

Why this strong comeback? First, more attractive rates thanks to competition. Second, post-2022 caution: players like Ledn have streamlined their offers and secured their collaterals. Finally, company treasuries’ demand is exploding, seeking structured returns.

In short, CeFi is back. Not by ideology, but by efficiency.

DeFi: An Explosion… but Fueled by Incentives?

DeFi also hits new heights: $26.47 billion loans by the end of June 2025, a 42.11% quarterly growth. A record number, far surpassing the 2021 peak. But does this really mean adoption?

The dollar value of outstanding loans on DeFi applications has strongly rebounded since Q1, increasing by $7.84 billion (+42.11%) to reach $26.47 billion – a new all-time record. 

On the surface, all seems perfect. But one number raises questions: the number of active Ethereum addresses is 27% lower than in May 2021. In other words: more volume, but fewer users. What is happening?

The answer is one word: looping. On Aave, “liquid leverage” strategies allow borrowing ETH with stETH, restaking it… then repeating. A form of circular leverage.

Galaxy explains: “Users implement “looping strategies” enabling them to arbitrage the yield of their collateral assets against borrowing costs.”

DeFi grows fast but not always healthily. Watch out for incentive bubbles.

DATCO and ETFs: The Trojan Horse of Crypto Debt?

Little known to the public, Digital Asset Treasury Companies (DATCO) are changing the game. Using classic debt to buy bitcoin or ether, these companies create massive leverage… often invisible.

Galaxy warns:

Due to the absence of new debt emissions by bitcoin DATCOs, the treasury companies’ debt balance has not changed… [but] June 2028 remains the date to watch with $3.65 billion maturing. 

Among the pioneers: MicroStrategy (now Strategy), but also newcomers on Ethereum. And through crypto ETFs like IBIT, investors can also borrow on margin against their shares.

What to remember: 

• $12.74 billion of DATCO debt: not included in total volumes;
• Estimated $3 to $6 billion in ETF margins, an invisible leverage;
• $3.65 billion of DATCO debts maturing in June 2028;
• Loan-to-market-cap ratio still low, ~1.5% vs 3% for US stocks;
• CeFi + DeFi + DATCO + ETF = over $61.76 billion in crypto loans

It’s clear: raw numbers often underestimate reality.

While markets break record after record, innovation continues at the frontier of the real world. Credefi and Brickken open a new path with permissionless debt for real-world assets. Proof that while numbers blaze, the real crypto revolution is just beginning.