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Web3.0

Increase in Cryptocurrency-Backed Lending During Bear Markets: A Funding Alternative to Selling?

2026/09/04 19:30(Updated 2026/09/04 18:01)

CoinPost

Written by A.Yamada

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Increase in Cryptocurrency-Backed Lending During Bear Markets: A Funding Alternative to Selling?

Borrowing Increases Under Bear Market Conditions

Borrowing Increases Under Bear Market Conditions

CryptoQuant, a firm specializing in cryptocurrency analysis, reported on the 2nd that during bear markets, both 'whales' (major holders) and individual investors are more inclined to borrow against their holdings rather than sell them. This trend suggests an increase in the layer of participants opting for loans backed by cryptocurrencies.

According to data from the cryptocurrency lending service 'CoinRabbit', the average number of loans per investor has increased in the 2026 bear market compared to the bullish period of 2025...

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