Crypto holders relied more heavily on digital asset-backed loans as market conditions weakened in 2026, according to research from CryptoQuant analyzing data from crypto lender CoinRabbit.
Crypto-backed loans enable holders to access cash without selling their digital assets directly. Typically, borrowers pledge more collateral than the value they receive, though falling prices can trigger liquidations or require additional collateral.
Borrowing Activity Rises Among Retail and Wealthy Users
The report highlights increased borrowing activity among both retail and high-net-worth individuals. Retail users saw the largest shift, with their average number of loans rising 74% from 30.8 per user in 2025 to 53.5 in 2026. High-net-worth users experienced an 18% increase, moving from 16.5 to 19.4 loans.
Repeat borrowing also grew more common on the platform. The share of users taking out multiple loans increased from 61.9% to 65.1%. Retail borrowers waited an average of 21 days between loans, compared to 11 days previously.
Shifts in Collateral and Trading Preferences
Collateral preferences shifted notably among wealthier users. Bitcoin's share of pledged assets for high-net-worth individuals dropped from 57.8% to 30.5%. Meanwhile, Zcash captured a 24.2% share after previously not appearing in the top 10.
CryptoQuant attributed part of Zcash's rise in collateral use to its price rally, which saw the asset climb from roughly $50 in late 2025 toward $800. Monero, Chainlink, and Cardano also secured larger shares of high-net-worth collateral.
For retail users, XRP remained a primary collateral choice, though its share declined from 41.7% to 35.2%, with Bitcoin remaining close behind. Assets such as TRON, Stellar, BNB, Kaspa, and Velo also entered the mix.
Trading volumes reflected similar adjustments as market conditions shifted. Tether and Bitcoin remained the top two assets by volume, with USD Coin moving into third place. Flare, Ether, and Ondo joined the top 10 by trading volume, while Solana, Stellar, and Shiba Inu dropped out.
