Recent data shows a record growth in crypto loans amidst increasing market interest. We explore what the numbers indicate and whether this development is sustainable.
CeFi Comeback: Data Analysis
By the end of June 2025, the volume of loans in centralized finance (CeFi) reached $17.78 billion, marking a 14.66% increase from the previous quarter. This figure does not account for additional volumes from heavyweights like DATCO and crypto ETFs.
Galaxy Research states: > "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."
Reasons for this strong recovery include more attractive rates due to competition and improved offer structures from major players.
DeFi Issues: Growth Amid User Decrease
The volume of loans in decentralized finance (DeFi) also hit a record—$26.47 billion, a 42.11% increase. However, the number of active Ethereum users is 27% lower than in May 2021, raising questions about healthy growth.
Galaxy notes: > "The dollar value of outstanding loans on DeFi applications has strongly rebounded since Q1, increasing by $7.84 billion (+42.11%)."
The problem lies in so-called looping strategies, where users create artificial borrowing volume by reinvesting funds, potentially distorting data on real market activity.
DATCO and ETFs: Invisible Leverage in Crypto Debt
Digital Asset Treasury Companies (DATCO) are becoming influential players in the market by using traditional debt to purchase Bitcoin or Ether and creating significant leverage opportunities.
Galaxy emphasizes: > "Due to the absence of new debt emissions by Bitcoin DATCOs, the treasury companies' debt balance has not changed..."
It's important to note that the existing loan volumes often underreport the real market situation, as $12.74 billion in DATCO debt is not included in total calculated volumes.
The total amount of crypto loans now exceeds $61.76 billion, signaling a resurgence of interest in the crypto market. However, it is crucial to monitor details to assess the long-term sustainability of this growth.
