Ethereum and L2s Dominate Crypto Lending Revenue
- Ethereum ETH -0.40% and L2 networks lead with 90% of crypto lending revenue.
- Lending reaches $73.59 billion, a 38.5% increase.
- DeFi holds 62.71% dominance over CeFi in lending.
Crypto lending revenue, largely originating from Ethereum and its Layer 2 network, now constitutes nearly 90% of the market, as reported by industry expert David.
This dominance signifies Ethereum’s pivotal role in crypto lending, reflecting its technological advancements and potential market growth amid rising decentralized finance trends.
Ethereum and its Layer 2 networks now account for nearly 90% of crypto lending revenue, according to recent data. This marks a significant shift toward decentralized finance and highlights the importance of emerging blockchain protocols.
Key figures indicate that crypto-collateralized lending surged to $73.59 billion in Q3 2025. This reflects a 38.5% increase compared to the previous quarter. DeFi borrowing contributed heavily to this growth, showcasing Ethereum’s pivotal role.
DeFi applications have shown a 62.71% dominance over centralized finance platforms by the end of Q3. This underscores Ethereum’s strong foothold in crypto lending and its contribution to financial decentralization through onchain networks.
The financial domain observes Ethereum maintaining a central position with stabilized borrowing rates facilitating looping strategies. “These strategies have witnessed a contraction in volumes, but the impact on lending protocols remains prominent,” an analyst noted in a recent discourse.
The broader effects on the crypto market include more competitive borrowing conditions. Scaled solutions reduced costs significantly, allowing active participation in lending markets, primarily benefiting institutional and individual underwriters involved in Ethereum-backed assets.
Insights reveal a potentially transformative financial landscape driven by Ethereum’s dominance. Historical analysis suggests the continuation of exponential growth in this sector, supported by enhanced lending app functionalities and broader Layer 2 adoption.
