Crypto asset-backed lending surged to $73.59 billion in the third quarter of 2025, marking a 38.5% increase from the previous year. This growth is attributed to the expansion of decentralized finance (DeFi) and increased institutional participation, according to AICryptoCore. Leading platforms such as Aave, Nexo, and MakerDAO are utilizing Ethereum, Bitcoin, and stablecoins to provide liquidity without forced sales. DeFi lending alone saw a significant rise of 54.84%, highlighting the sector's robust growth. The increase is further supported by regulatory clarity in the UK and US, which is encouraging broader adoption of decentralized finance models, especially following the challenges faced by centralized finance (CeFi) platforms in 2022.