Under-Collateralized Crypto Lending Brings Credit Risk Onchain

Credit risk has moved onchain. Active on-chain private credit rose from roughly $0.40 billion at the start of 2025 to $2.29 billion by March 31, 2026, and that surge is overwhelmingly concentrated in a single venue: Maple Finance, which expanded its active loan book from $0.21 billion to $2.13 billion over the same period, or about 93.1% market share. The numbers come from CoinGecko’s sector reporting based on DeFiLlama data, which shows the step change in scale and concentration across protocols through the end of Q1 2026 (CoinGecko 2026 RWA Report).

That shift is timely because on-chain private credit relies on borrower underwriting and real counterparty performance, not only on-chain collateral. CoinGecko also highlights that Maple’s recent growth is driven by loans to crypto-native market makers and trading firms, a borrower mix whose balance sheets can be tightly coupled to crypto market volatility. Correlation risk is therefore embedded in the leading venue for this activity (CoinGecko).

… Continue reading the full article at the original source below.