CoinVoice has recently learned that, according to Coindesk, a Galaxy Research report shows that the scale of mortgages in the crypto market grew by 27% in Q2, reaching $53.1 billion, the highest level since early 2022, primarily driven by DeFi lending demand and a rebound in risk appetite. Bitcoin fell from $124,000 to $118,000, triggering over $1 billion in liquidations in the crypto derivatives market, marking the largest scale of long liquidations since early August. Analysts believe this is more like a healthy profit-taking rather than the beginning of a reversal, but it also highlights the market's vulnerability when leverage accumulates quickly. Galaxy analysts point out that pressure points have begun to emerge. In July, Aave saw a large number of withdrawals, pushing ETH lending rates above Ethereum staking yields, breaking the 'circular arbitrage' trading logic—using staked ETH as collateral to borrow more ETH. This deleveraging process triggered a run on staking positions, causing Ethereum’s beacon chain exit queue to set a historical record of 13 days. Galaxy indicated that since July, the borrowing costs of USDC in the over-the-counter market have continued to rise, while on-chain lending rates have remained stable. The spread between the two has widened to the highest level since the end of 2024. This divergence indicates that off-chain demand for dollars has exceeded on-chain liquidity, which could exacerbate volatility if market conditions tighten further. With the surge in loan volumes, concentrated lending power, tightening DeFi liquidity, and the widening gap between on-chain and off-chain dollar markets, the system is showing more pressure points. The $1 billion liquidation on Thursday serves as a reminder that the impact of leverage is twofold. [Original link]

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