Coinbase’s on-chain borrowing surged from under $100 million to $600 million by August, highlighting institutional and user confidence in decentralized finance.
The exchange’s market share fell from 7% to 5.8% despite rising trading volumes, placing it ninth in global rankings by July 2025.
Coinbase expanded DeFi services with Base token trading and upcoming Solana support while acquiring Deribit in a $2.9 billion deal to reinforce growth.
Coinbase has reached a milestone in decentralized finance as on-chain borrowing climbed beyond $600 million by mid-August 2025. Data from Dune Analytics showed a steep rise in borrow originations since early this year. The pace has accelerated sharply since April, reflecting increasing adoption among individual and institutional users.
Borrow originations were below $100 million at the beginning of 2025 but rose exponentially in the following months. The surge demonstrates a growing preference for blockchain-based lending over traditional credit systems. Users are seeking liquidity without selling their crypto holdings, and institutions are testing new ways of integrating decentralized finance into broader financial structures.
Industry Signals and Coinbase’s Push
Coinbase executives highlighted the trend on social media. Max Branzburg, a senior leader at the company, emphasized that the future of finance lies on-chain. The chart showing the borrowing growth was later reposted by CEO Brian Armstrong, signaling alignment at the highest level of the exchange. Coinbase’s regulatory structure adds credibility, making the company an attractive entry point for investors exploring decentralized finance.
https://twitter.com/maxbranzburg/status/1956756288685420679
The firm has also expanded its DeFi offerings. It introduced decentralized exchange trading for Base tokens and is preparing to add support for Solana. These steps complement its borrowing feature and reinforce Coinbase’s role as a bridge between traditional markets and blockchain finance. The strong demand suggests that on-chain financial services are moving closer to mainstream recognition.
Market Share Decline in Trading
While Coinbase expanded in DeFi, its global trading market share slipped. According to CoinGecko data, the exchange held a 7% share at the start of 2025. By July, this fell to 5.8%, even as monthly trading volumes increased to $101.7 billion. Coinbase is now ranked ninth globally among exchanges.
Other exchanges faced similar pressure during the second quarter of 2025. Seven of the ten largest platforms reported declining activity. Crypto.com, for example, saw its trading volume fall more than 61% over two quarters. The combined trading volume of the ten largest exchanges dropped by nearly $1.5 trillion, leaving the total at $3.9 trillion.
To counter these shifts, Coinbase is pursuing acquisitions. The exchange confirmed a $2.9 billion deal to acquire Deribit as part of its “everything exchange” strategy. The move underlines efforts to diversify services and stabilize market position while continuing its focus on decentralized finance expansion.
The post Coinbase Onchain Borrowing Tops $600M as DeFi Expands Globally appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.