Q3 Lending Peaks at $73.59 Billion Amidst Market Turmoil
Crypto lending surged by 38.5% in Q3 2025, reaching a record $73.59 billion. This increase was partly driven by heightened DeFi lending, which grew by $14.52 billion to $40.99 billion. Futures open interest, a measure of market leverage, saw significant growth, peaking at $220.37 billion by early October. However, a drastic market crash on October 10 led to the liquidation of over $17 billion in futures positions, marking the largest single-day liquidation event. Binance, Bybit, and Hyperliquid were prominent players in these liquidations. Market reactions were swift, with many exchanges dealing with unprecedented volumes. Despite the magnitude, there have been no official responses from industry leaders or regulatory bodies.
Richard Teng, CEO, Binance, stated, "The record liquidations on October 10 reflect the volatile nature of crypto derivatives, but they also signal a critical juncture for risk management in trading."
Bitcoin Dips Amidst Record October Liquidations
The $17 billion liquidation on October 10, 2025, surpassed the previous record of $10 billion set in May 2021.
Bitcoin (BTC) currently trades at $92,599.74, with a market cap of $1.85 trillion and dominates 58.74% of the market. Its 24-hour trading volume reached $81.32 billion, declining by 16.05%. Price changes over 90 days show an 18.26% decrease.
Experts from the Coincu research team highlight potential regulatory oversights due to surging crypto leverage. Technological advances in DeFi are expected to bolster resilience against future liquidity shocks in markets. Furthermore, historical precedence warns of possible heightened volatility and regulatory scrutiny in upcoming fiscal quarters.