Crypto Borrowing Shifts as DeFi Contracts and CeFi Activity Rebounds: CryptoQuant
2025-12-24 20:55
Crypto borrowing activity is undergoing a huge shift as decentralized finance (DeFi) contracts sharply during this latest current market correction while centralized finance (CeFi) shows early signs of recovery. DeFi leverage is fading. AAVE borrowing is down ~70% since August as risk appetite fell with prices. But on @Nexo , borrowing rebounded +155% WoW during the drawdown. Users are choosing to borrow against collateral, not sell. pic.twitter.com/paqjLMeq5L — CryptoQuant.com (@cryptoquant_com) December 24, 2025 New research from CryptoQuant highlights how changing risk appetite and liquidity needs are reshaping borrowing behavior across the crypto ecosystem. DeFi Borrowing Contracts as Risk Appetite Fades According to CryptoQuant’s latest dashboard decentralized borrowing has fallen in line with declining crypto prices. Since August borrowing volumes on major DeFi protocols have dropped as traders reduce leverage and exposure. CryptoQuant reports on Aave which is one of the largest DeFi lending platforms, weekly borrowing of stablecoins USDT and...
