How Leverage Is Shaping Crypto in 2025: Risks, Trends & Market Impact
Published: 2025-06-21
Status:
Available
|
Analyzed
Published: 2025-06-21
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The DeFi lending market experienced a rebound from late March to May.
"from late March through to May the DeFi lending market has rebounded"
Pending
The introduction of Pendle tokens onto Ave was a significant factor in the rebound of the DeFi lending market.
"a big factor behind this was the introduction of Pendle tokens onto Ave"
Pending
Allowing users to borrow against popular altcoins like ADA, Doge, and XRP directly in DeFi could unlock significant liquidity and push crypto market leverage to unprecedented heights, potentially driving up prices.
"this would potentially unlock tens of billions in cryptonative liquidity pushing the level of leverage in the crypto markets to heights we've never seen before and likely pulling crypto prices up along with it"
Pending
Stablecoin borrowing rates dropped significantly from an average of 12% in January to around 5% by late May.
"stable coin borrowing rates have dropped substantially over the last few months falling from an average of around 12% in January to roughly 5% by late May"
Pending
The gap between over-the-counter (OTC) and on-chain borrowing rates for USDC and USDT has narrowed, with OTC rates now only about 2-4% higher.
"currently USDC and USDT OTC borrow rates sit only around 2 to 4% above their onchain equivalents much closer than in previous market cycles"
Pending
A substantial portion of the debt issued by Bitcoin treasury companies is set to mature between 2027 and 2028, a period potentially coinciding with a crypto bear market.
"a big chunk of this debt matures between 2027 and 2028 exactly when the crypto market could be deep into bare territory"
Pending
If Bitcoin's price is low at debt maturity, treasury companies may be forced to sell large amounts of BTC to repay debts, further depressing prices.
"if Bitcoin's price is significantly lower when this debt matures these companies might be forced to sell huge amounts of BTC to repay their obligations driving crypto prices down even further"
Pending
The crypto futures market saw a rebound in confidence from early April, with open interest nearly doubling from $68 billion to $116 billion by late May.
"starting around early April confidence began returning to the market and by late May open interest had rebounded sharply nearly doubling from roughly $68 billion to $116 billion"
Pending
The CME's share of Ethereum futures has significantly increased from under 18% in November to nearly 40%.
"the CME share of Ethereum futures has gone from under 18% last November to nearly 40% now"
Pending
Hyperliquid's open interest increased by nearly 20%, rising from approximately $3 billion to close to $9 billion.
"Hyperliquid's open interest went up by nearly 20% jumping from around $3 billion to close to $9 billion"
Pending
Binance's dominance in perpetuals trading is declining as Hyperliquid gains market share.
"binance historically the undisputed king of Pers trading has seen its dominance decline instead Hyperlid has entered the arena gaining ground on its centralized counterparts"
Pending
The significant increase in leverage trading and borrowing by both individuals and corporations suggests the next bear market could be particularly severe.
"the rapid rise in leverage trading and borrowing both from individual traders and leverage corporate entities means the next bare market could be especially brutal"
Pending
A liquidation spiral originating in futures and lending markets could cascade to treasury companies, triggering a domino effect that amplifies market crashes.
"a liquidation spiral beginning with leverage traders in futures markets and lending protocols could quickly spread eventually forcing treasury companies to liquidate their holdings as well creating a domino effect that significantly amplifies any market crash"
Pending
The market is likely to experience explosive upward price movements first as more people use leverage.
"we'll probably first see some explosive price moves to the upside as more and more people pile in using leverage"
Pending