AAVE v3's Ethereum lending volume reached 1 million ETH in January 2026, marking a 48% increase from the previous month, according to CryptoQuant data. This surge reflects a significant rebound in cryptocurrency loan demand, as the market shows signs of recovery from its December 2025 lows. The increase in lending activity suggests a cautious rebuilding phase in the market, with stablecoin lending also showing slight recovery. Additionally, Nexo's CeFi platform reported a 9% month-on-month increase in credit withdrawals, totaling $24 million in January 2026. Despite this growth, lending activities remain below mid-2025 levels. The proportion of Ethereum in Nexo's collateral has risen to 12%, indicating a preference among ETH holders for liquidity through lending rather than selling, while Bitcoin continues to dominate with 56% of total collateral.