The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a shifting landscape for digital asset leverage, the centralized crypto lending (CeFi) market experienced its first contraction in over a year. Total loan books fell by 6% in the first quarter of 2026 to reach $23.3 billion, according to reports. This marks the first decline since Q3 2024, driven by pullbacks at major players like Galaxy and Ledn, even as Tether solidified its market leadership with a dominant 68% share of the CeFi lending space.
The contraction reflects a cooling of risk appetite in centralized platforms compared to the rapid expansion seen in previous quarters. Per market data, while competitors like Coinbase and Nexo managed to capture growth, the broader sector is facing headwinds as institutional leverage rotates. This trend highlights a consolidation phase where dominant stablecoin issuers like Tether are increasingly central to the ecosystem's credit infrastructure.
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Sign InMonitoring market levels, COIN shares stood at $159.24 at close July 1, 2026, having traded within a range of $146.3 to $164.54. Investors should watch for upcoming catalysts including the Chinese Manufacturing PMI on June 30, which could impact global liquidity sentiment and broader risk-on assets including the crypto-linked equity sector.