tldr; Crypto markets are experiencing a resurgence in borrowing against digital assets, with outstanding loans reaching $73.6 billion in Q3 2025, surpassing previous records. Major banks and funds are now involved, increasing the market’s scale and entanglement with traditional finance. However, risks remain high due to extreme leverage and falling asset prices, reminiscent of the 2022 crash. While the industry claims improved safeguards, the growing debt and shrinking collateral suggest potential for another systemic crisis.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
StrangelyBeige on
I’ve had some success with it, borrowing to buy on big dips and selling the debt back on big pumps. It can be a useful tool used to boost profits.
Would I recommend it though? No, if you get a Oct 10 type day it can go to shit VERY quickly, I watched SUI crash to 50 cents and my borrow amount briefly went negative. Somehow I didn’t get liquidated, but the scare was enough to make me realise what I was playing with.
Django_McFly on
It can be useful.
Coquito3000 on
Probably the most stupid risky move. If it works good luck. If it doesnt then you get fucked.
In 2017 I started investing in crypto. My credit has always been above 830 so I went to the bank to get a loan. They refused. I was annoyed but then in 2018 everything crashed. So Im happy now that I didnt get that loan because I would have lost money. All my coins were bought with my disposable income after I paid all my bills.
Mulvita43 on
I am prudent with it but yes. I may borrow 10-20 percent of my value and either buy more to supply more and yield farm with some liquidity pools
002_timmy on
It’s the best form of DeFi. It takes the “be your own bank” to the maximum when you lend and borrow
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tldr; Crypto markets are experiencing a resurgence in borrowing against digital assets, with outstanding loans reaching $73.6 billion in Q3 2025, surpassing previous records. Major banks and funds are now involved, increasing the market’s scale and entanglement with traditional finance. However, risks remain high due to extreme leverage and falling asset prices, reminiscent of the 2022 crash. While the industry claims improved safeguards, the growing debt and shrinking collateral suggest potential for another systemic crisis.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
I’ve had some success with it, borrowing to buy on big dips and selling the debt back on big pumps. It can be a useful tool used to boost profits.
Would I recommend it though? No, if you get a Oct 10 type day it can go to shit VERY quickly, I watched SUI crash to 50 cents and my borrow amount briefly went negative. Somehow I didn’t get liquidated, but the scare was enough to make me realise what I was playing with.
It can be useful.
Probably the most stupid risky move. If it works good luck. If it doesnt then you get fucked.
In 2017 I started investing in crypto. My credit has always been above 830 so I went to the bank to get a loan. They refused. I was annoyed but then in 2018 everything crashed. So Im happy now that I didnt get that loan because I would have lost money. All my coins were bought with my disposable income after I paid all my bills.
I am prudent with it but yes. I may borrow 10-20 percent of my value and either buy more to supply more and yield farm with some liquidity pools
It’s the best form of DeFi. It takes the “be your own bank” to the maximum when you lend and borrow