CeFi Credit Market Contraction: Data and Context
According to the latest data from CryptoQuant, the centralized finance (CeFi) credit market experienced a notable turning point in the first quarter of 2026. Total loan volume fell 6% quarter-over-quarter from approximately $24.8 billion to $23.3 billion, marking the first industry-wide contraction since the third quarter of 2024. The decline is primarily driven by crypto users actively reducing leverage amid a persistent bear market, reflecting a significant drop in risk appetite.
Major Lender Landscape: Tether Still Dominates but Market Share Begins to Shift
Tether remains the absolute dominant player in the CeFi credit market, with a loan volume of $15.8 billion and a 68% market share. However, despite its massive scale, Tether's loan volume shrank by 7% quarter-over-quarter, indicating its lending activities are also contracting in line with the broader market. Meanwhile, market share is shifting toward smaller and medium-sized lenders.
Maple Finance ranked second with $2.1 billion in loans (9% market share), recording a ~6% QoQ increase in loan volume and gaining 1.0 percentage point in market share. Nexo ranked third with $1.8 billion (8% market share), posting a nearly 1% increase in loan volume and a 0.5 percentage point market share gain. Coinbase also saw its loan volume grow ~6% QoQ, with a 0.7 percentage point market share increase. These three were the only major lenders to achieve loan growth.
Most Institutions Contract, Galaxy Digital and Ledn Hit Hardest
All other major lending institutions recorded declines. Galaxy Digital's loan volume fell 21% QoQ, and Ledn fell 19%, the largest drops among major players. These contractions far exceed the industry average, possibly linked to specific client base deleveraging or asset allocation adjustments. Overall, the concentration of the CeFi credit market is undergoing a slight readjustment, but Tether's dominance remains unchallenged in the near term.