In 2026, cryptocurrency holders increasingly turned to loans backed by digital assets as market conditions weakened, prompting shifts in borrowing behavior and collateral preferences, according to research from CryptoQuant. This trend allowed users to access liquidity without immediately selling their holdings.
The data reveals a significant uptick in loan activity. The average number of loans per retail user surged by 74%, from 30.8 in 2025 to 53.5 in 2026. High-net-worth users also saw an increase, with the average number of loans rising 18% from 16.5 to 19.4 over the same period. Repeat borrowing became more common, with the percentage of users taking multiple loans climbing from 61.9% to 65.1%. Retail borrowers also adjusted their cadence, spacing out loans by an average of 21 days in 2026, up from 11 days in 2025.
Collateral composition saw notable changes. For high-net-worth individuals, Bitcoin’s share as pledged collateral dropped substantially from 57.8% to 30.5%. Concurrently, Zcash gained prominence, accounting for 24.2% of pledged assets among this group. This rise is partly attributed to Zcash’s significant price rally, which saw its value increase from around $50 in late 2025 to approximately $800 in 2026.
Retail users also diversified their collateral. While XRP remained a popular choice, its share decreased from 41.7% to 35.2%. Other assets such as TRON, Stellar, BNB, Kaspa, and Velo also saw increased use as collateral.
In terms of trading volume, Tether and Bitcoin maintained their top positions, with USD Coin moving into third place. Flare, Ether, and Ondo also entered the top 10, while Solana, Stellar, and Shiba Inu fell out.
These evolving borrowing and collateral strategies indicate that crypto holders were adapting to the challenging market environment of 2026, seeking financial flexibility through digital asset-backed lending.
Why This Matters
The materials describe a narrow update: In 2026, crypto holders, both retail and high-net-worth, increased their reliance on loans collateralized by digital assets as market conditions weakened. The exact reasons for the shift in collateral preferences beyond Zcash’s price rally are not fully detailed.
Broader Context
Source materials place the factual news in this context: Crypto-backed loans allow holders to access cash without immediately selling their digital assets.
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