Coinbase reports significant growth in borrowing within decentralized finance, surpassing $600 million, despite a decline in trading market share.
Borrowing Growth Highlights DeFi Strength
Coinbase has surpassed $600 million in onchain borrowing, signaling increased adoption of decentralized finance. According to Dune Analytics, new daily borrowings were under $100 million at the start of 2025, but had grown to over $600 million by mid-August. Max Branzburg, one of Coinbase's top executives, noted this trend on social media, emphasizing the importance of blockchain transition for finance and stating that 'neglecting this transition could be hazardous.'
Decline in the Global Trading Market
Despite growth in borrowing, Coinbase has lost ground in global exchange rankings. Data from CoinGecko shows its market share dropped from 7% at the beginning of 2025 to 5.8% in July. In July, Coinbase's trading volume reached $101.7 billion, up from the previous month; however, the decline in market share has put the exchange in ninth place globally, reflecting intense competition among major platforms.
Conclusions on Coinbase's Current Situation
The surge in borrowing demonstrates strong demand for crypto-backed credit, but the declining market share indicates the tough challenges of competing in the global trading space. To address this, Coinbase has pursued acquisitions, including a $2.9 billion deal for the Deribit derivatives platform, as part of its strategy to expand its international market presence.
Coinbase shows strong metrics in the decentralized finance space, but changes in the trading market present significant challenges that require adaptation to new conditions.
