Crypto activity recovered in July, new liquidity still limited

Crypto activity showed signs of recovery in June, though liquidity inflows remained weak. DeFi lending shows signs of making a return, as internal stablecoin liquidity is still high. 

July remained a stagnant month for crypto, where BTC dominated altcoins and tokens. Despite this, DeFi activity and other on-chain transactions showed signs of recovery. 

DeFi lending had its first month of growth for 2026. After five months of decline, active DeFi loans rose from $20.7B to $22.2B, up 7.2% for the month, based on Cryptorank data. Overall value locked in DeFi rose from $68B at the beginning of the month to over $74.9B as of July 31.

 According to Cryptorank, Aave still dominates lending, with $11B in active loans, and a 46.2% market share. Around two-thirds of the loans are held on Aave and Morpho. 

Some of the recovery in July is due to the positive performance of ETH. The token closed with a 20.32% net gain for the month, while BTC gained 9.03% for the same period. BTC still outperformed most altcoins and tokens. 

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