Following the October 10 flash crash, decentralized finance (DeFi) markets experienced extreme volatility. Data from DeFiLlama shows that trading positions on perpetual DEXs fell fast, dropping from $26 billion to under $14 billion in just a few hours.
At the same time, lending platforms collected more than $20 million in fees, the highest ever in a single day. Weekly trading across decentralized exchanges also hit a record $177 billion.
Data from DeFiLlama shows that lending platforms like Aave V3, Compound V3, and Morpho V1 drove the jump in fees. Normally, these platforms collect between $2 million and $6 million a day, but on Friday, that number shot past $20 million. The spike came as traders rushed to borrow and repay loans after the market crash. Aave V3 continued to lead, showing its strong position in the DeFi lending.
At the same time, trading on decentralized exchanges (DEXs) exploded. Weekly trading volume jumped past $177 billion, breaking all previous records and showing strong trader activity. The momentum started building in mid-2024 but picked up much faster this year.
By early October, weekly volumes regularly stayed above $160 billion, a sign that traders were regaining confidence. Even with all the chaos in the market, DeFi trading platforms maintained a steady flow of liquidity.
Borrowing drops while yields spike
Total borrowing on lending platforms dropped below $50 billion for the first time since August. This shows that many traders became more cautious about taking on debt after the crash.
Returns on stETH also moved widely during the same period. DeFiLlama shows stETH returns climbing above 7% in early October before settling near 3%. Such quick changes were most probably caused by sudden market changes and short-term reward strategies by some platforms.
The October flash crash exposed how quickly DeFi markets can shift between growth and correction. Yet, the sector’s record volumes and high activity underscore its ongoing strength and maturing liquidity.
Also Read: The 9/11 of the Crypto Market: The October 10 Crash
