CryptoQuant: Bear market borrowing demand increases, high-net-worth individuals shift collateral to privacy coins like ZEC
CryptoQuant cites data from the crypto lending platform CoinRabbit, stating that during the 2026 bear market, the average number of loans per user increased compared to the 2025 bull market: retail users rose from 30.8 to 53.5 loans, high-net-worth individuals (HNWI) from 16.5 to 19.4 loans, and the share of repeat borrowers increased to 65.1%. Loan frequency shows divergence: HNWIs maintain a stable interval of 26–27 days, while retail users extended theirs from 11 days to 21 days. CryptoQuant believes this trend reflects the countercyclical nature of lending demand during bear markets, with holders preferring to collateralize loans rather than sell at low prices. The collateral structure shows that among HNWIs, Bitcoin's share dropped from 57.8% to 30.5%, ZEC surged to 24.2% (with its price rising from around $50 to around $800 during the same period), and XMR, LINK, and ADA also saw increased shares; retail users remain predominantly holding XRP (down from 41.7% to 35.2%), followed by Bitcoin, with altcoins such as TRX, XLM, BNB, KAS, and VELO entering the top ten. In terms of trading volume, USDC climbed to third place, RWA tokens like ONDO entered the top ten, while SOL and SHIB fell out of the ranking.
CryptoQuant's report shows borrowing demand rising during the bear market, meaning holders prefer collateralized loans over selling at low prices, which reduces direct sell pressure. However, high-net-worth investors shifting collateral from BTC to privacy assets like ZEC and XMR points to defensive, risk-off behavior rather than fresh demand, and this is mostly a retrospective structural observation without a clear current catalyst. The overall market effect is mixed and unclear, so neutral (weak) is appropriate.