Crypto Lending Market Declines in Q2 2026, Tether Dominates CeFi
The crypto lending market experienced a decline in Q2 2026, according to Galaxy Research's latest report. The total amount of crypto collateralized lending decreased by 16.78% month-on-month to $56.16 billion, down 40.13% from the Q3 2025 peak of $78.69 billion. This marks a significant drop in DeFi lending, which shrank by 27.61% month-on-month to $20.43 billion.
On the other hand, CeFi borrowing decreased by 9.62% month-on-month to $22.98 billion, marking the first time since Q3 2023 that CeFi volume has surpassed DeFi. Tether continues to dominate the CeFi market with a 58.54% share.
The report notes that the current deleveraging process differs from previous bear markets in its 'orderly and moderate' pace, with consecutive quarterly declines of only 10%, 5%, and 17%. The futures market saw open interest decrease by 3.08% month-on-month to $103.2 billion but rebounded to about $114 billion in July.