Crypto lending soared to a record $73.6 billion in the third quarter of 2025, according to data from Galaxy Digital. This marks a significant increase from the previous high of $69.4 billion in Q4 2021, highlighting a robust recovery in the sector. The surge is attributed to recent ETF approvals and more relaxed regulatory policies. Despite this growth, the market faces potential risks as Bitcoin has recently corrected by over 20%. This downturn raises concerns about the sustainability of the lending boom and the possibility of new financial risks emerging in the crypto market.