CeFi Lending Market Contracts 6% to $23.3B in Q1 2026, First Decline Since Q3 2024

According to CryptoQuant, the centralized finance (CeFi) lending market contracted 6% to $23.3 billion in Q1 2026, marking the first industry-wide decline since Q3 2024 as crypto users reduced leverage amid market weakness. Tether remained the largest lender with $15.8 billion in outstanding loans, representing 68% market share.
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