According to Foresight News, Galaxy Research's Q1 2025 report shows that the total amount of cryptocurrency loans decreased by 4.9% quarter-on-quarter to $39.07 billion, marking the first decline since the end of 2023.
Despite an overall contraction in numbers, leverage is shifting. DeFi lending fell by 21% at the beginning of the quarter but rebounded significantly in April and May, primarily due to Aave integrating Pendle tokens, with a rebound of over 30% in late May.
Ethereum led the resurgence of DeFi. Meanwhile, the scale of CeFi lending rose by 9.24%, reaching $13.51 billion, with Tether, Ledn, and Two Prime as the main driving forces.
