[$74 Billion Market]

With its loan book worth $2.03 billion, Nexo has become a significant player in the crypto loan industry, which scaled to $73.59 billion in 2025.

Looking at the on-chain data provided by CryptoQuant and Nexo, let’s explore which collaterals users are borrowing against.

[Bitcoin as the Leading Collateral at 54%]

The biggest cryptocurrency by market capitalization, bitcoin, leads as the preferred collateral of Nexo users, amounting to 54.31% of all collateral.

Bitcoin is known for its de facto “digital gold” status. Most crypto holders view bitcoin as the most reliable store of value with the highest liquidity and lowest perceived long-term risk compared to small-cap altcoins.

[12% of Users Prefer Ethereum as Collateral]

The second most preferred collateral is Ethereum, preferred by 12.16% of Nexo users. Ethereum users in general are more inclined to stake or use DeFi protocols, leading to a reduced collateral share compared to bitcoin.

However, Ethereum’s higher volatility compared to bitcoin can lead to tighter liquidation thresholds on some platforms, making users cautious.

[Nexo as the Tax-Efficient Platform to Access Liquidity]

Why is Nexo so popular among crypto investors? The platform provides an instant credit line, allowing investors to borrow fiat currency or stablecoins without selling their assets.

Example: Investor holds one (1) bitcoin, and loans USDC against it. Using Nexo, the investor uses a 50% Loan-To-Value (LTV) ratio, borrowing 50% of bitcoin’s current market value. The full 1 bitcoin remains held, preserving the entire position for potential upside, while still accessing funds.

Following this method, Nexo’s users keep exposure to potential price appreciation, without selling their portfolio, and gain a tax-efficient access to liquidity.

Written by oinonen_t