Crypto Holders Borrow More Amid Weakening Markets in 2026

CryptoQuant's analysis of data from crypto lender CoinRabbit reveals that in 2026, holders increasingly turned to loans backed by digital assets as market conditions weakened. The report found higher borrowing activity among both retail and high-net-worth users. This shift towards lending signals greater adoption of lending products and reduced immediate sell pressure.

The data analyzed shows a rise in crypto lending, which increases liquidity but also counterparty risk for markets and platforms. According to the report, this trend may have been driven by holders relying more on loans as market conditions weakened, particularly among retail users.