DeFi loans broke records in the third quarter.

Significant Growth in the Onchain Lending Market

According to a report published by Galaxy Digital, onchain lending transactions account for 66.9% of all crypto-collateralized debt. DeFi loans have reached at the record high level of 41 billion dollars thanks to incentives offered, new types of collateral, and the rapid growth on evolving blockchains like Plasma.

Differences Between Decentralized and Centralized Finance

Centralized finance (CeFi) providers have seen their total debt balance reach 24.4 billion dollars with a 37% increase. However, stricter collateral requirements have emerged during this process. Tether controls almost 60% of the tracked centralized financial loans.

Historical Liquidation Event

The 19 billion dollars worth of liquidation wave on October 10 was historically the largest. However, Galaxy states that this reflects the risk systems of exchanges and does not indicate the accumulation of systemic credit risk.