Centralized finance (CeFi) crypto lending contracted 6% in Q1 2026, with total loan books falling to $23.3 billion according to data from Cryptoquant. The decline marked the industry's first contraction since Q3 2024. Weaker digital asset markets pushed borrowers to reduce leverage. Tether maintained dominance with a 68% market share and $15.8 billion loan book, while Maple Finance, Nexo, and Coinbase gained market share. Galaxy Digital and Ledn experienced the sharpest declines at 21% and 19% respectively.
Tether Maintains 68% Market Dominance Despite 7% Loan Book Decline
Tether held a $15.8 billion loan book and 68% market share in Q1 2026, according to Cryptoquant data. The stablecoin issuer's lending book declined 7% from the previous quarter. Despite the contraction, Tether's loan book remained larger than all other tracked CeFi lenders combined. The company lost 0.7 percentage points of market share during the quarter.
Maple Finance ranked second with $2.1 billion in loans and 9% market share. Nexo followed with $1.8 billion and 8% share. Coinbase and Galaxy Digital each held approximately 6% market share. Bitcoin-backed lender Ledn accounted for 3% of the market.
Maple Finance, Nexo and Coinbase Expand Loan Books in Q1 2026
Coinbase and Maple Finance each expanded their loan books by approximately 6% in Q1 2026. Nexo also grew, with an increase of nearly 1%. These three platforms were the only major lenders in the covered group to report loan book growth during the quarter.
The growth translated into market share gains. Maple Finance added 1 percentage point of market share. Coinbase gained 0.7 percentage points. Nexo added 0.5 percentage points. The three lenders captured share as other platforms contracted.
Galaxy Digital and Ledn Record Largest Quarterly Contractions
Galaxy Digital saw the sharpest decline among major lenders, with its loan book falling 21% quarter over quarter. Ledn followed with a 19% drop. Galaxy Digital lost 1.1 percentage points of market share during the period.
Total CeFi loan books contracted across most of the sector. The industry-wide decline reflected borrowers reducing exposure in response to lower asset prices. Loan books had expanded continuously from Q3 2024 through Q4 2025 before the Q1 2026 contraction.
FAQ
What was the total size of CeFi crypto lending in Q1 2026?
Total CeFi loan books fell 6% to $23.3 billion in Q1 2026, according to data from Cryptoquant. This marked the industry's first contraction since Q3 2024.
Which company held the largest market share in CeFi crypto lending in Q1 2026?
Tether held a 68% market share with a $15.8 billion loan book in Q1 2026. Despite a 7% quarterly decline, Tether's loan book remained larger than all other tracked CeFi lenders combined.
Which CeFi lenders grew their loan books in Q1 2026?
Coinbase and Maple Finance each expanded their loan books by approximately 6% in Q1 2026. Nexo also grew with an increase of nearly 1%. These were the only major lenders in the covered group to report growth during the quarter.
