Crypto Lending Falls for Third Consecutive Quarter

Crypto lending fell for a third consecutive quarter in Q2 2026, according to Galaxy Research. The total market size decreased by $11.33 billion, or 16.78%, to reach $56.16 billion.

This contraction left the market at 40.13% below its peak of $78.69 billion in Q3 2025. DeFi lending app loans dropped 27.61% to $20.43 billion, with CeFi open borrows falling by 9.62% to $22.98 billion.

Tether's share slipped 371 basis points to 58.54%. Galaxy Research attributed the decline to an orderly deleveraging process rather than forced liquidations or counterparty failures.