Galaxy Digital’s report reveals that crypto-collateralized lending surged 27% from the previous quarter to reach 53.1 billion USD. This reflects a return to peak levels not seen since early 2022.
A recent drop in Bitcoin prices resulted in over 1 billion USD in liquidations, exposing vulnerabilities in the market due to excessive leverage.
USDC OTC borrowing costs have risen significantly since July, creating mismatches in liquidity that strain DeFi markets and affect lending practices.
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