Centralized finance lending volume contracted by 6% in the first quarter to $23.3 billion, marking the first industry-wide decline since the third quarter of 2024, according to data from CryptoQuant.
Market share shifted toward selective lenders as Maple Finance gained 1.0%, Nexo expanded 0.5%, and Coinbase increased 0.7% during the quarter. The concentration reflects divergent performance across the sector, with major competitors experiencing significant headwinds.
Galaxy Digital saw its lending portfolio plummet 21%, while Ledn declined 19%, underscoring stress among established institutional lenders. Tether's lending volume retreated 7%, suggesting reduced demand or strategic reallocation. The contraction indicates ongoing market consolidation in the CeFi lending space, with capital flowing to platforms perceived as having stronger risk management or operational stability.