Coinbase Onchain Lending Surpasses $600M Amid Market Share Drop

Coinbase has expanded its onchain lending program, with total borrowing volume surpassing $600 million by mid-August 2025. This marks a significant milestone in the growth of decentralized finance (DeFi) lending and reflects the increasing demand for blockchain-based liquidity solutions. The rapid growth in borrowing activity, which began the year below $100 million and surged past $600 million in just a few months, highlights a shift in both retail and institutional investor behavior toward onchain financial services [1].

The onchain lending feature allows users to access liquidity without liquidating their crypto assets, a model that aligns with the broader trend of asset retention and value optimization in the crypto space. Coinbase executives, including product head Max Branzburg and CEO Brian Armstrong, have emphasized the potential of onchain finance as the “future of finance,” reinforcing the platform’s strategic pivot toward decentralized tools while maintaining its regulatory compliance framework [2].

Despite this progress, Coinbase has seen a decline in its global market share. According to CoinGecko, the exchange processed $101.7 billion in trading volume in July 2025, placing it in ninth position among global exchanges. Its market share has fallen from 7% at the start of the year to 5.8%, reflecting the intensifying competition across the digital asset industry [3].

The broader market has also experienced a slowdown, with seven of the top ten exchanges reporting a drop in trading activity during the second quarter. For example, Crypto.com recorded a 61% decline in trading volume between Q1 and Q2 2025, while the top ten exchanges collectively lost $1.5 trillion in trading volume, a 27.7% annual decline [4].

Coinbase’s dual strategy—expanding its DeFi offerings while competing in the traditional trading space—reflects its attempt to balance innovation with market dynamics. The platform’s acquisition of Deribit for $2.9 billion is part of its broader vision to become a comprehensive financial hub bridging centralized and decentralized markets [5].

On-chain analyst Ember has noted that large-scale Ethereum holdings and DeFi activity are indicators of a maturing ecosystem, where both institutional and retail investors are increasingly adopting blockchain-based financial tools [6]. Coinbase’s position in this evolving landscape suggests that its ability to scale its onchain lending program will be critical to its long-term success, particularly as the industry continues to navigate regulatory and market challenges.

Source:

[1] Coindoo – [https://coindoo.com/coinbase-expands-onchain-lending-past-600m-amid-global-market-share-drop/](https://coindoo.com/coinbase-expands-onchain-lending-past-600m-amid-global-market-share-drop/)

[2] Coindoo – [https://coindoo.com/category/fintech/](https://coindoo.com/category/fintech/)

[3] CoinGecko – [https://www.coingecko.com](https://www.coingecko.com)

[5] PANews – [https://www.panewslab.com/en/articles/a26d21d3-7ed0-4994-914e-94e56696d5f4](https://www.panewslab.com/en/articles/a26d21d3-7ed0-4994-914e-94e56696d5f4)

[6] Leap Digital Investments – [https://leapdigitalinvestments.com.au/](https://leapdigitalinvestments.com.au/)