Galaxy: The surge in leverage in the cryptocurrency market raises concerns about vulnerability According to a Galaxy Research report, the Q2 mortgage loan scale in the cryptocurrency market increased by 27% to $53.1 billion, reaching a new high since early 2022, driven by the rebound in DeFi lending demand and risk appetite. The fall in Bitcoin prices has triggered over $1 billion in liquidation, marking the largest long liquidation since August. Analysts say this is more like healthy profit taking, but highlights the market fragility brought about by the rapid accumulation of leverage. The report also points out that the widening interest rate gap between on chain and off chain US dollar markets, tightening DeFi liquidity, and increasing system pressure points may exacerbate market volatility.