Defi Lending has reached several new milestones in June. Although most of the market attention is on institutional investors who collect Bitcoin, capital remains steadily and quietly flow into loan protocols.
This trend creates opportunities for investors, but also lays a growing responsibility on these protocols, because they manage an increasing volume of funds.
Achieving active loans in June of all time high
According to Defillama data, the total value (TVL) in loan protocols $ 55 billion, the highest level in the history of Defi, surpassed from June.
This figure includes all assets that are locked in Defi -credit platforms. It includes both assets deposited by lenders and collateral provided by borrowers.
Total value locked in loan protocols. Source: Defillama
Although TVL fell in the first three months of the year due to external concerns such as tariff wars, it recovered quickly. The rising numbers reflect the growing trust of investors in earning yield through lending.
In addition, data from the tokenminal show that active loans have reached $ 26.3 billion from June 2025. This is the highest value ever registered in the history of the sector. It represents the total value of loans borrowed by users of Defi -Lending Protocols.
Total value of active loans. Source: Token Terminal
The breakdown of active loans reveals that Aave dominates the market with $ 16.5 billion in active loans, more than 60% of the total. Morpho is in second place with $ 2.2 billion, followed by Spark with $ 1.6 billion.
Although Aave’s dominance shows strong user confidence on the platform, this also means that technical malfunction, infringement of safety or legal steps against Aave can cause a domino effect.
The demand for flowering lending brings a growing risk of
The recent growth of Stablecoins with a high efficiency has helped to attract more capital in loan protocols. Stablecoins such as USDT, USDC and DAI are designed to maintain a stable value. This reduces price volatility compared to crypto assets such as ETH or BTC, which makes users feel safer when borrowing or borrowing stablecoins.
Recently Max Branzburg, head of consumer products in Coinbase, has shown that Coinbase users borrowed $ 400 million in USDC with an interest rate of around 5%. This happened within just a few months after launching the product.
Growth of Coinbase loans on Morpho. Source: Duin
A major concern is the risk of liquidation linked to loan-to-value (LTV) ratios. The LTV ratio measures the value of a loan against the collateral.
The current LTV of Coinbase is, for example, 0.48. If the value of the collateral – usually cryptocurrencies – pops up strongly, the LTV ratio can rise rapidly. If it is set by Coinbase of 86%, the collateral is automatically sold to cover the loan, which can lead to losses for the borrower.
Moreover, investors on a bullish market often want to benefit from the upward trend. They borrow funds from Defi protocols to buy more crypto assets such as Bitcoin and Ethereum. Many also use leverage to scale up their transactions.
“Leverage is a double -edged sword, gently walk Crypto Fam,” noted Lil G investor.
As confidence increases, it also takes advantage of. Any market drop of 10-20% could cause a step-by-step effect. History shows that such sharp dips can still occur, especially during moments of sensitive or unexpected news.