The on-chain leverage ratio for $BTC has surged to about 38%, comparable to levels seen in 2021. This is primarily driven by a contraction in TVL (Total Value Locked) rather than new lending demand.
The DeFi exploit in April led to an outflow of around $13 billion in TVL funds. Despite the overall market pullback, meaningful deleveraging hasn't truly materialized yet.
The DeFi exploit in April led to an outflow of around $13 billion in TVL funds. Despite the overall market pullback, meaningful deleveraging hasn't truly materialized yet.