Galaxy Digital: The scale of loans in the Crypto Assets market rose by 27% quarter-on-quarter in the second quarter, reaching 53.1 billion USD.

According to Techub News, Galaxy Research has released a report indicating that the scale of cryptocurrency market loans in the second quarter rose by 27% quarter-on-quarter to $53.1 billion, reaching a new high since early 2022, mainly driven by increased DeFi lending demand and a rebound in risk appetite. Recently, Bitcoin has fallen from $124,000 to $118,000, triggering over $1 billion in long position liquidations, the largest scale since August. Analysts believe this is more like a profit-taking event, but it also highlights the market vulnerability caused by rapid leverage accumulation. Meanwhile, the lending cost of USDC in the off-chain market has continued to rise since July, while on-chain interest rates have remained stable, with the spread between the two expanding to the highest level since the end of 2024, indicating that off-chain dollar demand exceeds on-chain liquidity. Galaxy warns that under the backdrop of a surge in loan scale, concentrated borrowing, and tightening liquidity, systemic pressure is increasing, and the recent $1 billion liquidation event reminds the market that leverage risks have a bidirectional effect.