CeFi Credit Market Contracts as Bear Market De-leveraging Takes Hold
According to the latest data from CryptoQuant, the total loan volume in the centralized finance (CeFi) credit market declined 6% quarter-over-quarter to $23.3 billion in Q1 2026. This marks the first industry-wide contraction since Q3 2024. Analysts attribute the decline to crypto users reducing leverage amid a bear market environment, leading to weaker demand for borrowing.
Leading Lenders: Tether Dominates with 68% Market Share
Among the major lending institutions, Tether remains the largest player with $15.8 billion in loans, capturing a 68% market share—despite a 7% drop in its own loan volume. The next largest lenders are Maple Finance ($2.1 billion, 9% share) and Nexo ($1.8 billion, 8% share). Notably, market share is shifting toward Maple, Nexo, and Coinbase, which gained 1.0, 0.5, and 0.7 percentage points respectively during the quarter.
Only Three Lenders See Growth; Galaxy Digital and Ledn Post Sharpest Declines
Against the backdrop of an overall contraction, only three major lenders—Coinbase, Maple Finance, and Nexo—recorded positive quarter-over-quarter loan volume growth. Coinbase and Maple each grew by roughly 6%, while Nexo posted nearly 1% growth. All other major lenders experienced declines in loan volume, with Galaxy Digital (-21%) and Ledn (-19%) leading the downturn. Tether's loan volume also fell 7%. While the market structure has shifted slightly, concentration among top players remains high.