Crypto Holders Tap Loans as Market Conditions Weaken
Crypto holders are increasingly relying on digital asset-backed loans as markets cool in 2026. According to research from CryptoQuant, borrowing activity among both retail and high-net-worth users rose significantly last year.
The report analyzed data from crypto lender CoinRabbit and found that the average number of loans per user increased by 74% for retail users and 18% for high-net-worth users. This shift in borrowing habits is likely due to weaker market conditions, which have led holders to seek alternative ways to access cash without selling their digital assets.
The report also noted that repeat borrowing became more common among users, with the share of users taking multiple loans increasing from 61.9% to 65.1%. Retail borrowers waited an average of 21 days between loans, compared to 11 days previously.
Beyond borrowing activity, collateral preferences also shifted, particularly among wealthier users. Bitcoin's share of pledged assets among high-net-worth users fell significantly, while Zcash saw a sharp price rally and rose in popularity as collateral. The report noted that the increase in Zcash's use as collateral was linked to its price surge from around $50 to over $800.