Crypto lending shrinks 6% to $23.3B in Q1 2026 as Tether holds 68% market share

Centralized crypto lending contracted by 6% to $23.3 billion in Q1 2026, marking the first decline since Q3 2024 amid weaker digital asset markets. Tether remains dominant with a 68% share despite a 7% drop in its loan book. Meanwhile, Maple, Nexo, and Coinbase gained market share by growing their loan books, signaling selective growth in the sector. The contraction reflects cautious borrowing and reduced leverage as crypto market volatility persists, favoring lenders with strong controls and institutional ties.