Active loans about decentralized credit applications climbed on May 21 to a record of $ 23,723 billion, based on tokenminal facts.
In the meantime, the total value of the Defi -Ecosystem (TVL) is 6.4% below the level that was recorded on January 31, the day before President Donald Trump formalized his proposed entry rates.
The increase in excellent loans extends an expansion that started at the beginning of April when the credit markets regained the momentum alongside wider crypto prices.
Token Terminal data shows that the aggregated loans have been expanded by around $ 8.5 billion since 8 April, canceled by deeper liquidity on Aave, Morpho and Compound.
With $ 23,723 billion, active loans now exceed the previous cyclespiek in December 2021 by around $ 3 billion. It emphasizes the growing role of permission-free credit in crypto-native trade, leverage and basic strategies.
Shock
Defillama’s Global Dashboard shows Defi TVL at $ 180.4 billion from 22 May, only 6.4% below $ 192.8 billion TVL registered on January 31.
This benchmark is important because it took place a day before the White House confirmed that new import rates activated, which currently have a 90 -day hold.
The making of the tariff plans led to a gradual decrease of 27% in Bitcoin (BTC) from 1 February to 8 April, when it reached the lowest price level this year. The TVL of the Defi -Ecosystem followed with a decrease of almost 36% in the same period.
Furthermore, collateral was dominated by Ethereum (ETH), outsided ETH derivatives and Stabilecoins, contracted accordingly. It came to almost $ 110 billion in mid -March.
Potential appetite for yield and leverage
The rising loans from the loan suggest a greater demand for leverage for advanced traders. Many borrow Stablecoins to finance or absorb directional BTC and ETH positions on the basis of basic and liquidity-molient yields.
However, the collateral for those loans is the net result of loans in standard TVL calculations.
Consequently, a simultaneous increase in loan and collateral drawing can leave the total TVL flat or even lower while accelerating the credit activity. This repeats the scenario of leverage on the chain using loan protocols.
Lending proceeds also play a role. Average supplied-usdc rates on a Aave and Morpho-Aave has been fluctuating between 6% and 8% on an annual basis since April, well above short-term American treasure plans.
This leaves Stablecoin deposits away from passive reserves and in credit pools. A higher use pushes the loans upwards, but only has a muted effect on TVL because Stablecoins generally enter protocols against a ratio of one on one dollar.
The record of $ 23.723 billion in active loans and the deficit of 6.4% of the TVL emphasizes a market where the credit demand accelerates, even because aggregated collateral remains slightly below the peak of late January.
