The analysis of credit leverage in the crypto market shows a gradual and controlled decrease The crypto market is entering a phase of systemic delevuring, but it doesn't yet have the characteristics of a credit crisis . Market Overview The total size of lending in the crypto-backed cryptocurrency market decreased by $11.33 billion, or 16.78%, to $56.16 billion . This marks the third consecutive year of declining lending activity and the first time that all three groups—CeFi, DeFi, and crypto-backed stablecoin CDPs—have simultaneously contracted. However, more important than the absolute scale of the decline lies in the speed and structure of the deleveraging process ; current data reflects a relatively sequential balance sheet adjustment, rather than a sudden credit contraction due to forced liquidation, insolvency, or the collapse of credit counterparties. Total crypto-collateralized lending fell to $56.16 billion, and considering only DeFi lending, the value of outstanding loans decreased by $7.79 billion, equivalent to a 27.61% QoQ decline, to $20.43 billion . This marks the third consecutive decline in DeFi lending and is also the largest contributor to the overall market downturn. On the other hand, the 27.61% decline in DeFi lending should be evaluated in relation to the entire market rather than as an isolated signal. This result suggests that the current delevering process is not focused on a single protocol or financial model but is occurring simultaneously across multiple layers of the crypto credit system. For corporate treasury holdings, the trend of delevering is also evident. Debt directly used to purchase or supplement digital asset holding strategies decreased to approximately $16.1 billion , primarily after Strategy completed its $1.5 billion convertible bond repurchase program in May 2026. Additionally, Bitcoin reserve firm Strategy actually used approximately $1.38 billion in cash to repurchase $1.5 billion worth of bonds, reducing its outstanding convertible bonds from $8.2 billion to $6.7 billion. Therefore, it shows that the delevering process is not only present in the lending market but is also spreading to the capital structure of businesses owning digital assets . In the futures market, corrections also occurred, but with significantly less intensity than in lending. The sharper decline in ETH OI suggests that the reduction in leveraged positions was not uniform across the entire market. While Bitcoin maintained relatively stable OI, Ethereum experienced a larger contraction in open position size. If the market were experiencing a leverage crisis similar to 2022, the decline in OI would typically be accompanied by the continuous destruction of positions and limited ability to re-leverage. The recovery in OI after the late Q2 decline suggests that some positions were closed and re-established rather than being completely eliminated from the system. Therefore, current futures data does not yet indicate a serious decline in market risk tolerance. The decline in lending for three consecutive quarters, coupled with a decrease in corporate treasury debt, suggests that market participants are proactively scaling back their use of borrowed capital and improving balance sheet quality. More importantly, the structure of the current delevering process remains fundamentally different from that of 2022. Back then, the decline in lending occurred at an extremely rapid and continuous pace, linked to the insolvency of credit institutions and forced deleveraging.