Crypto Lending Market Shrinks $11B in Q2 Amid Shift to CeFi

The crypto lending market contracted by $11.33 billion in Q2 2026, according to Galaxy Research's latest report.

This represents a 16.78% quarter-over-quarter decline and a 40.13% drop from the market's peak of $78.69 billion recorded in Q3 2025.

The contraction was not evenly distributed between decentralized finance (DeFi) and centralized finance (CeFi), with DeFi lending falling 27.61% to $20.43 billion, while CeFi declined just 9.62% to $22.98 billion.

This shift has led to a notable milestone: for the first time since Q3 2023, CeFi's share of the lending market exceeds DeFi's.