According to @DefiLlama, over $24 billion is currently borrowed through onchain lending protocols, marking the highest level in nearly three years and continuing to rise. This surge in DeFi lending activity is driving increased trading volumes and liquidity across major cryptocurrencies like ETH and BTC. Traders are closely watching onchain metrics for potential volatility and new opportunities, as elevated borrowing often signals heightened leverage and market activity. Source: DefiLlama.

According to @EmberCN on Twitter, a significant AAVE holder continued to leverage looping loans to accumulate AAVE, even after partial liquidation during the sharp price drop to $114 in early April 2025. Despite the forced liquidation, this trader resumed aggressive looping strategies as the market rebounded, increasing AAVE exposure via DeFi lending protocols. This persistent accumulation suggests strong conviction and has contributed to increased on-chain activity and potential price support for AAVE, which traders should monitor for volatility and liquidation events (Source: @EmberCN on Twitter).

According to Brad Freeman (@StockMarketNerd), SOFI has consistently sold every loan pool at a gain on sale margin above their initial loan markings, with these pools acquired by funds possessing advanced loan data. SOFI actively hedges fair value volatility from its quarterly results, ensuring stable financial reporting. Additionally, all processes are audited by third parties and incorporate macroeconomic expectations such as GDP trends. These measures enhance SOFI's risk management profile and may influence investor sentiment in both traditional and crypto markets, especially as stable financial practices can inspire confidence in tokenized lending platforms and DeFi protocols. Source: Brad Freeman (@StockMarketNerd) on Twitter, May 23, 2025.

According to @intotheblock, liquidation risk is crucial when using lending protocols in DeFi. Analyzing these risks on platforms like DeFi Risk Radar can provide insights into potential vulnerabilities. Liquidation occurs when collateral value falls below a certain threshold, leading to forced asset sale to cover loan obligations, which is critical for traders to monitor to prevent losses.

According to IntoTheBlock, they will be live in 30 minutes to discuss DeFi lending protocols. Interested individuals can sign up through the provided link.