Coinbase has hit a new milestone in decentralized finance, with onchain borrowing on its platform crossing $600 million in mid-August 2025.
The surge highlights how DeFi lending is moving closer to the financial mainstream, even as the U.S.-based exchange faces a decline in global trading dominance.
DeFi Lending Demand Accelerates
Data from Dune Analytics reveals that borrowing activity on Coinbase has grown at an unprecedented pace throughout 2025. Daily originations that started the year below $100 million have climbed steeply, with borrowing demand surpassing $600 million in just a few months.
This rapid expansion points to strong retail and institutional appetite for crypto-backed loans, signaling a shift toward blockchain-based liquidity solutions. Coinbase executives have been quick to emphasize this transition, with product head Max Branzburg describing the “future of finance as onchain,” a statement later amplified by CEO Brian Armstrong.
The platform’s borrow feature enables users to access liquidity without liquidating their crypto holdings, making it an attractive option for both individuals and funds. Recent service expansions, including decentralized trading for Base tokens and upcoming Solana support, further align Coinbase with the growing DeFi ecosystem.
Market Share Pressure in Trading
While DeFi borrowing accelerates, Coinbase’s standing in the exchange rankings has weakened. According to CoinGecko, the exchange handled $101.7 billion in trading volume in July, up from June but still leaving its global market share down to 5.8% from 7% at the start of the year.
The slip has pushed Coinbase to ninth place among global exchanges, underscoring the fierce competition across trading platforms. This decline comes despite the company’s push into new markets, including a $2.9 billion acquisition of Deribit to bolster its “everything exchange” strategy.
Coinbase isn’t alone in facing volume headwinds. CoinGecko data shows seven of the top ten exchanges saw a drop in activity during the second quarter. Crypto.com, for example, recorded a 61% fall across Q1 and Q2, with volumes sinking from $560.2 billion to $216.4 billion. In total, the top ten exchanges shed $1.5 trillion in volume, a 27.7% decline year-over-year.
Balancing Two Fronts
The contrasting trends show Coinbase navigating a delicate balance: while its centralized trading business loses ground in market share, its DeFi borrowing growth positions the company as a key bridge between traditional finance and the onchain economy.
As institutional adoption of decentralized finance accelerates, Coinbase’s regulatory framework and compliance-first approach may give it a competitive advantage in capturing the next wave of capital flows.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/coinbase-expands-onchain-lending-past-600m-amid-global-market-share-drop/