CryptoQuant data shows that DeFi leverage is gradually decreasing: since August, lending volume on AAVE has decreased by approximately 70% as prices have fallen and risk appetite has weakened.
During the same market downturn, Nexo saw a 155% increase in lending volume, reflecting a trend of users borrowing/lending with collateral rather than selling Cryptoasset.
- DeFi leverage weakens according to CryptoQuant data.
- AAVE: Loan volume has decreased by approximately 70% since August.
- Nexo: Loan volume increased again by 155% during the downturn.
DeFi leverage decreases: AAVE plummets, Nexo surges.
CryptoQuant notes that leverage in DeFi has been shrinking since August, accompanied by falling prices and lower risk appetite.
Amidst falling prices, lending activity on AAVE decreased by approximately 70%. This development indicates a significant cooling of demand for leverage or opening positions through borrowing in DeFi , consistent with a more cautious market sentiment.
Conversely, on the Nexo platform, lending volume recovered 155% during the very downturn. This data suggests defensive behavior: users prioritize lending or borrowing with collateral to maintain exposure to cryptocurrency, rather than selling when the market weakens.
