- Coinbase borrowing tops $600M as global trading share slips.
- DeFi demand fuels $600M growth, but Coinbase market weakens.
- $600M onchain loans highlight DeFi rise, Coinbase share falls.
Coinbase has surpassed $600 million in onchain borrowing, marking a significant rise in decentralized finance adoption. At the same time, the exchange is seeing its trading market share fall despite rising volumes.
According to Dune Analytics, borrow originations on Coinbase have grown sharply since the start of 2025. New daily borrowing originations were under $100 million at the start of the year and over $600 million by mid-August.
Max Branzburg, one of the top Coinbase executives, cited the trend on social media. In his opinion, onchain is the future of finance, and neglecting the transition may be hazardous. Brian Armstrong, the CEO of Coinbase, reposted the chart, indicating that the company is on the same page regarding its decentralized lending business.
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Borrow Growth Shows DeFi Strength
Coinbase’s borrow feature lets users access liquidity without selling their crypto holdings. This model has attracted both retail users and institutions, with many institutions now opting to use blockchain-based loans instead of credit.
Also, Coinbase is working on DeFi services with a decentralized exchange of Base tokens and the future support of Solana. These moves will put the company in the position of a regulated gateway to a traditional finance world and the onchain economy.
The high level of borrowing points to high uptake of crypto-backed credit. Rapid growth over a few months underscores how decentralized finance is entering the mainstream market.
Decline in the Global Trading Market
Despite growth in lending, Coinbase has lost ground in global exchange rankings. Data from CoinGecko shows its market share slipped from 7% at the start of 2025 to 5.8% in July.
In July, Coinbase registered a trading volume of $101.7 billion, up from the previous month. Nevertheless, the decline in market share has relegated the exchange to ninth place in the world, an indicator of stiff market rivalry among major platforms.
To counter this, Coinbase has pursued acquisitions, including a $2.9 billion deal for derivatives platform Deribit. The relocation helps it pursue its everything exchange strategy, which seeks to expand its presence in international markets.
Coinbase’s lending surge highlights the momentum of decentralized finance, but its slipping market share shows the challenges of competing in global trading.
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