Nexo users borrowed $863 million during crypto’s pullback — and most repaid without panic selling, CryptoQuant finds

Crypto investors borrowed nearly $863 million through lending platform Nexo over the past year and rather than collapsing under falling prices, more than 30% voluntarily repaid or reduced positions during the downturn, according to a new CryptoQuant analysis.

The report, published in February 2026, examined lending activity between January 2025 and January 2026 and found that users borrowed close to $1 billion against their crypto holdings during a period marked by price corrections across major digital assets.

Rather than triggering panic liquidations, the data suggests investors are actively managing leverage and reducing exposure in an orderly manner.

Crypto lending data reveals resilience during market pullback

According to CryptoQuant analyst JA Maartun, the lending patterns reflect controlled risk behaviour rather than market distress.

“Data from Nexo shows $863 million in total credit issued… users borrowed nearly $1 billion, and over 30% of users returned.”

JA Maartun, On-chain Analyst, CryptoQuant.

The findings arrive as Bitcoin, Ethereum, and Solana experience price retracements tied closely to broader macroeconomic sentiment and equity market movements.

Analysts increasingly view crypto markets as high-beta expressions of global risk appetite, meaning capital flows often mirror shifts in traditional financial markets.

Managed deleveraging replaces panic selling

One of the most significant takeaways for crypto investors is the behaviour of borrowers during the downturn. More than 30% of loan users repaid or reduced positions during the drawdown.

Market observers say this distinction matters. In previous crypto crashes, cascading liquidations amplified price declines, particularly when overleveraged traders were unable to maintain collateral requirements.

Industry commentary cited by analysts described the current trend as evidence that confidence remains intact.

“Nearly $1B borrowed during a pullback says confidence didn’t fully leave the room… feels more like managed risk than stress.” — CryptoJournaal market commentary.

This pattern contrasts sharply with activity in decentralized finance (DeFi), where borrowing demand has dropped significantly during the same period.

CryptoQuant data shows borrowing on DeFi platforms like Aave fell roughly 69% from peak levels as traders reduced leverage amid falling prices.

The divergence implies that during volatile times, investors might be moving towards centralised lending platforms that provide organised collateral management and more transparent liquidation frameworks.

Centralized lending gains traction as risk appetite shifts

The Nexo data highlights a broader structural shift underway in crypto finance: a migration from speculative leverage toward liquidity preservation strategies.

Despite DeFi borrowing contracts, centralised finance (CeFi) platforms have seen a resurgence in activity.

Investors continue to seek liquidity without liquidating long-term holdings, as evidenced by CryptoQuant’s earlier report of a 155% recovery in borrowing demand on centralised lending platforms in spite of market weakness.

Nexo’s lending model allows users to borrow against crypto collateral instead of liquidating assets, enabling investors to maintain exposure while accessing cash or stablecoins.

This approach has gained popularity during uncertain market cycles, particularly among long-term holders attempting to avoid realising losses.

Separate industry data shows the platform has accumulated roughly $30 billion in stablecoin inflows over time, underscoring sustained user participation even during downturns.

This signals a maturation of market behaviour. Rather than exiting positions entirely, participants appear to be rotating between leverage levels and liquidity tools to navigate volatility.

Regulatory scrutiny and systemic risks remain

Despite encouraging signals around stability, analysts caution that centralized lending platforms still face regulatory and structural risks.

Nexo has recently operated under increased regulatory oversight, including penalties related to past lending practices in certain jurisdictions.

Market analysts note that compliance pressures remain a defining factor for centralized crypto lenders as authorities worldwide tighten oversight of digital asset credit services.

Risk management also remains central to the investment debate. Crypto-backed loans depend heavily on collateral valuations; sharp price declines can still trigger liquidations if borrowers fail to maintain loan-to-value ratios.

Transparency and reserve reporting have become key differentiators for lenders attempting to rebuild trust following earlier industry failures. Analysts say investor confidence now depends less on rapid growth and more on sustainable leverage practices and clear risk controls.