Crypto-collateralized lending fell 16.78% quarter on quarter to $56.16 billion in Q2 2026, according to Galaxy Research, marking a third straight quarterly contraction and leaving the market 40.13% below its Q3 2025 peak of $78.69 billion. DeFi lending dropped 27.61% to $20.43 billion, while CeFi borrowing fell 9.62% to $22.98 billion, allowing centralized platforms to overtake DeFi for the first time since Q3 2023. Tether held about 58.5% of the CeFi market, and the top three lenders - Tether, Maple and Nexo - accounted for 74.96%. The report said the pullback has been more "orderly and mild" than the 2022 deleveraging shock, with quarterly declines of 10%, 5% and 17% over the past three quarters rather than a single-quarter drop of more than 55%. In futures, open interest slipped 3.08% in Q2 to $103.2 billion before recovering to about $114 billion by July. On institutional corporate debt, Strategy completed a $1.5 billion debt repurchase in May, bringing total outstanding debt in the DAT industry down to $16.1 billion. Galaxy Research said deleveraging could continue gradually if the market avoids sharp liquidations or counterparty defaults.