Crypto Lending Balances Up 55% Since July, Risks Remain

The rebound signals that appetite for yield has returned faster than the risk infrastructure that failed in 2022 has been rebuilt. Interlinked protocols mean stress in one venue can still transmit quickly, and the emergence of AI-assisted hacks adds a threat vector that did not define the last cycle. Whether this growth is matched by stronger collateral and disclosure practices, or simply repeats the leverage dynamics that amplified the previous collapse, is the open question.