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Bitcoin Dominates Nexo Collateral: Shares and Risks Explained

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Bitcoin Dominates Nexo Collateral: Shares and Risks Explained

Key Takeaways

  • 1 BTC's share in Nexo collateral is 54.31%, significantly higher than ETH and stablecoins.
  • 2 Ethereum holds 12.16% of the collateral base, having dropped to 8%–9% in early 2025.
  • 3 Other crypto assets make up 31.7%, while stablecoins are only 1.83%, indicating loans focus on volatile assets.
  • 4 BTC's share remained stable between 53%–59% from early 2024 to mid-2025.
  • 5 CryptoZeno analyst called BTC the "key risk anchor" in centralized lending models.

Bitcoin accounts for 54.31% of Nexo's collateral, Ethereum 12.16%, others 31.7%, stablecoins 1.83%. Explore the dynamics and risks of this distribution.

The collateral structure on the Nexo platform clearly favors Bitcoin: it accounts for 54.31% of the total collateral backing, significantly surpassing the share of other key assets. Ethereum holds 12.16%, other crypto assets 31.7%, and stablecoins occupy a minimal 1.83%. CryptoZeno analyst explicitly notes that this configuration makes Bitcoin the "key risk anchor" for the platform's lending model.

Collateral Structure on the Nexo Platform

The collateral distribution on Nexo is concentrated around two main asset classes: Bitcoin and Ethereum, with a notable share of other tokens. Below are the key shares in the platform's collateral structure:

  • Bitcoin's share in collateral — 54.31%.
  • Ethereum's share — 12.16%.
  • Other crypto assets — 31.7%.
  • Stablecoins — 1.83%.

Changes in Collateral Shares Over Time

Bitcoin's share showed relative stability: from early 2024 through mid-2025, it remained within the 53%–59% range despite price fluctuations. This indicates that platform users consistently posted BTC as collateral rather than merely reacting to price movements.

Ethereum's share in the collateral structure declined throughout most of 2024, reaching a low of around 8%–9% in early 2025, followed by a moderate recovery. To better understand market flows related to ETH and associated movements, you can refer to the ETH growth materials, which provide additional context for these changes.

Risk and Volatility Analysis

The high share of Bitcoin makes it the central risk factor in Nexo's collateral base: according to CryptoZeno, BTC acts as a "risk anchor" for centralized lending models because its price volatility more strongly impacts the overall stability of the collateral portfolio. Simultaneously, having over 30% in the "other cryptocurrencies" category adds volatility and increases the beta load on the overall collateral structure.

The minimal share of stablecoins—less than 2%—indicates that the platform's lending activity primarily targets loans backed by volatile cryptocurrencies rather than capital preservation strategies. As a result, the platform's portfolio is more sensitive to sharp price movements and liquidity changes in the markets.

Expert Opinion

CryptoZeno's analyst emphasized that BTC dominance reflects its role as the primary risk factor in the platform's lending model and highlights user preferences when selecting collateral assets. The expert also noted the relative underutilization of ETH as collateral despite its liquidity and ecosystem maturity.

For a comparison of asset concentration and large holder distribution, you can check the related material on major institutions, which helps correlate market ownership structure and potential price impact.

Why This Matters

If you use BTC or ETH as collateral on lending platforms, the concentration of BTC in Nexo's collateral base directly affects the platform's sensitivity to Bitcoin price movements. A high share of volatile and alt assets increases the likelihood of rapid collateral value changes during market downturns, potentially leading to more frequent margin calls or liquidations.

Meanwhile, the small share of stablecoins means the platform relies less on stable assets to reduce overall collateral volatility. For miners, this means platform stability and risk parameters depend more on cryptocurrency market behavior than on stablecoin buffers.

What to Do?

Practical recommendations for miners with any number of devices—from one to a thousand—boil down to risk management and continuous monitoring of the collateral environment. Below are specific steps to reduce operational and credit risks:

  • Check which assets you use as collateral and keep in mind that BTC is the dominant risk factor on Nexo.
  • Diversify collateral across different assets if supported by the platform to reduce risk concentration in a single currency.
  • Maintain a reserve of liquid funds in case of margin requirements or rapid liquidations, especially during high volatility periods.
  • Monitor the platform's collateral share dynamics and BTC and ETH price movements to adjust positions timely.
  • Familiarize yourself with the platform's lending terms and liquidation rules to have a prepared action plan.

Frequently Asked Questions

What is the current share of Bitcoin in Nexo's collateral?

Bitcoin's share in Nexo's collateral base is 54.31% of the total collateral.

What are the shares of Ethereum and other assets?

Ethereum accounts for 12.16% of the collateral structure, other crypto assets make up 31.7%, and stablecoins represent 1.83%.

What does it mean that BTC is a "risk anchor"?

It means that due to BTC's large share in the collateral base, its price fluctuations have the most significant impact on the overall stability of the platform's lending model.

Should I change my collateral strategy because of this structure?

The decision depends on your personal risk tolerance and goals. It is recommended to assess collateral concentration, keep a reserve of liquid funds, and diversify collateral when possible to reduce the risk of rapid liquidation.