Q2 crypto-backed lending falls to $56.16B, down 17% from previous quarter

Crypto-backed lending totaled $56.16 billion in the second quarter, down 16.78% from the previous quarter, according to Galaxy Research. The figure was also 40.13% below the $78.69 billion peak reached in the third quarter of 2025. Within the total, DeFi lending fell 27.61% from the previous quarter to $20.43 billion, while centralized finance, or CeFi, lending declined 9.62% to $22.98 billion. As a result, CeFi lending surpassed DeFi for the first time since the third quarter of 2023. The report said the recent deleveraging process has been relatively orderly. It added that the latest quarterly declines of 10%, 5%, and 17% were comparatively moderate, versus a drop of more than 55% in a single quarter in 2022.