The CeFi lending market collapsed for the first time in a year and a half: the volume decreased to $23.3 billion.
The centralized crypto lending (CeFi) market experienced its first quarterly decline since the third quarter of 2024. The total loan portfolio of leading platforms decreased by 6%, reaching $23.3 billion by the end of the first quarter of 2026. This signals that the bullish momentum that fueled the sector for several quarters is beginning to weaken amid a correction in the spot market.
Who is losing and who is growing
The decline affected almost all major players. The largest portfolio drop was recorded at Galaxy Digital — down 21%. Ledn lost 19%, while the dominant lender Tether reduced its loan volume by 7% — from $17.04 billion to $15.8 billion. Despite this, Tether's market share remains overwhelming at 68%.
Against this backdrop, only three platforms stand out for managing to grow their portfolios: Coinbase and Maple Finance added approximately 6% each, while Nexo saw a symbolic 1% increase. As a result, their market shares rose: Maple by 1 percentage point, Coinbase by 0.7 percentage points, and Nexo by 0.5 percentage points.
Overall picture and structural shift
The sector's dynamics show a reversal after sustained growth. Recall that the total portfolio grew from $8.79 billion in the first quarter of 2024 to an all-time high of $25.8 billion by the end of 2025. The current decline is the first in a year and a half, and it is uneven in nature.
Tether's portfolio ($15.8 billion) remains more than seven times larger than that of its closest competitor — Maple Finance ($2.13 billion). The top six are rounded out by Nexo ($1.79 billion), Coinbase ($1.44 billion), Galaxy Digital ($1.43 billion), and Ledn ($725 million).
My analysis: The decline in CeFi lending volumes is not just a correction but a symptom of market overheating. Institutional borrowers are reducing leverage amid uncertainty, which could trigger further liquidity contraction. While Tether's dominance remains unshaken, the divergent dynamics among other players point to the beginning of sector consolidation. In the coming quarters, we will likely see a redistribution of shares and potential M&A among mid-tier platforms.