Crypto collateral loans soared to a record $73.6 billion by the end of Q3, surpassing the previous high set in 2021, according to a Galaxy Research report. On-chain lending now dominates 66.9% of the market, with DeFi lending reaching a new peak of $41 billion, marking a 55% increase. CeFi lending also grew by 37% to $24.4 billion, although it remains one-third below its 2022 peak. The growth in crypto lending is attributed to incentive programs, the introduction of new collateral types, and rising cryptocurrency prices. Despite a market crash in October that led to $19 billion in liquidations, including $192.86 million in forced closures on Aave V3 Core, analysts noted that the crash did not indicate systemic weakness, as most positions were safeguarded by automated deleveraging systems.