AAVE Borrowing Volumes Plunge 70% While Nexo Sees 155% Surge
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 25 2025- AAVE Borrowing Decline: AAVE's borrowing volumes for USDT and USDC have plummeted approximately 70% since August 2025, dropping from $6.2 billion to $1.9 billion, reflecting a significant decline in investor risk appetite that could lead to liquidity tightening.
- Nexo Borrowing Surge: In contrast to the market downturn, Nexo experienced a remarkable 155% week-over-week increase in credit withdrawals, reaching $23 million, indicating that users prefer borrowing against collateral rather than liquidating assets, thereby enhancing its role as a liquidity provider.
- Market Sentiment Shift: AAVE's total outstanding loans stand at $16.3 billion, with stablecoins comprising half, and the fluctuating borrowing rates reflect diminished demand for leverage in a bearish environment, suggesting a deep adjustment in the DeFi market.
- Evolving Investment Strategies: As market volatility persists, investors may be shifting towards holding assets instead of panic selling, indicating a maturation of investment strategies, with the potential resurgence of DeFi borrowing contingent on price recovery.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
