NEXO’s 83% Credit Drop: The Crypto Rollercoaster You Missed

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January 2025 opened with retail credit withdrawals on NEXO [NEXO] at a splendidly brazen $136.63 million. If that number had a passport, it would be stamped with “I am here to deploy leverage with the confidence of a dolphin wearing a monocle in a bull market.” It reflected aggressive leverage deployment during conditions so bullish they could only have been conjured by a committee of very optimistic accountants.

As volatility crept up, withdrawals receded to $85.3 million in February and $54.4 million in March, signaling not organic demand cooling but a rather polite rearrangement of balance sheets when liquidity decided to pull the rug on a whimsy-filled encore.

This early deleveraging implied that retail participants began reducing risk as liquidity conditions shifted, as if the universe had decided to move the furniture and left everyone to pretend they’d been planning the rearrangement all along.

Activity then reassembled its courage. April climbed to $75.2 million, May followed with $79.8 million, and June offered a local peak of $95.8 million, while MoM turned positive, a phrase that sounds suspiciously like a hallucinogenic motivational poster for bankers.

This rebound suggested traders re-engaged leverage to ride the recovering price momentum, using credit to re-enter risk assets as if the market were a crowded lift at a theme park run by improbable economists.

However, the second half showed structural fatigue-like a comfortable sofa deciding it had earned its retirement.

Withdrawals fell to $67 million in July, hovered around $70 million in August, then slid to $48.5 million in September as market upside stalled, which is to say the rollercoaster paused for a polite sip of tea before the next loop-de-loop.

The decline later accelerated to $22.04 million by November, reflecting risk aversion, thinner liquidity, and reduced speculative appetite. This sustained deleveraging implied balance sheet resets while excess leverage cleared, and marginal buyers retreated to places less dramatic, such as the space between couch cushions in a fort made of collateral.

Withdrawals stabilized in December 2025 and January 2026 at $23.957 million and $23.965 million, respectively, holding close to their lowest levels-the investment equivalent of a polite, very tired sigh.

That flattening suggests credit demand may be bottoming, often a precursor to gradual market reaccumulation once confidence rebuilds, or at least until the kettle cools enough to brew another existential crisis.

Credit growth meets liquidity stress

Ethereum[ETH] borrowing on Aave [AAVE] began in 2024, subdued near 150,000 to 200,000 ETH, with rates around 2.5-3% amid stabilizing markets. In other words, it was the borrowing equivalent of a boringly polite dinner party where everyone pretends the conversation isn’t about existential risk and speculative dragons.

Demand built steadily, reaching 400,000 ETH by October 2024 as traders increased leveraged positioning, like a chorus line of anxious acrobats asking for a bigger stage.

Momentum accelerated into early 2025; utilization approached 800,000 ETH while rates spiked near 3.5%, the kind of enthusiasm that makes EVs look underpowered and dragons look underutilized.

This signaled crowded leverage and rising collateral demand during strengthening ETH price trends, as if everyone suddenly remembered they owned enough collateral to back a small moon.

Borrowing peaked in mid-2025 near 1.2 million Ethereum [ETH], marking maximum speculative exposure. Thereafter, borrowing fell toward 600,000 ETH as deleveraging pressures emerged, like a crowd deciding the lightning show wasn’t worth the risk after all.

By early 2026, utilization neared 300,000 ETH, and rates eased toward 1.5-2%, reflecting cooling risk appetite and leverage reset, which is a fancy way of saying the limbo stick got shorter and the dance floor was suddenly less crowded.

Key support failure extends NEXO’s downtrend

NEXO extended its downtrend as the price slipped below the $0.901 and $0.947 resistance bands, reinforcing the bearish structure with the stubborn optimism of a stubborn vending machine that insists on giving you two left shoes for every purchase.

Selling pressure accelerated, driving the price into the $0.80 demand zone, where support briefly emerged, like optimism in a thunderstorm.

However, momentum weakened further as candles pierced the zone, pushing the price toward $0.73, a figure that sounds suspiciously like a polite way of saying “we’re nowhere near Earth, but our mood is.”

Moving averages trended downward and compressed above price, signaling sustained downside control, which is a technical way of saying the market had decided to be very agreeable about going downward while everyone pretends not to notice.

RSI hovered near 26, reflecting oversold conditions and weak reversal strength, which is the market’s way of saying, “I’m tired, stop poking me.”

This alignment showed persistent distribution rather than capitulation, like a government budget meeting where everyone pretends to be shocked by the deficit but brings cake anyway.

As the breakdown structure held, market sentiment tilted risk-off, with bulls requiring a reclaim above $0.90 to stabilize the near-term price structure, as if a squeaky chair could somehow coax a bullish rally out of retirement.

Final Thoughts

  • Leverage expanded sharply across credit markets before compressing, signaling a broad liquidity reset as risk appetite weakened.
  • Credit flows stabilized, yet NEXO price continued falling, showing market sentiment remained risk-off despite leverage cooling.

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2026-02-06 03:35