DeFi Lending Enters High-Debt Regime as Active Loans Hold Near Cycle Highs
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Sustained Borrowing Demand: Active loan balances across DeFi protocols have surged from low single-digit billions in early 2023 to approximately $35-$40 billion by Q1 2026, indicating persistent borrowing demand and a maturation of the lending market.
- Aave Dominates Market: Aave consistently leads in active loan volume each quarter, forming the backbone of DeFi borrowing activity, and its market share expands alongside total market growth, highlighting structural dependence during real load conditions.
- Emergence of Morpho: Starting in 2024, Morpho's market segment grows steadily, absorbing incremental demand through more efficient routing and vault-based structures, suggesting borrowers are increasingly focused on optimizing execution rather than merely seeking liquidity.
- Diversification of Borrowing Demand: The combined contributions from protocols like Maple Finance, Fluid, and Spark indicate that borrowing is no longer concentrated in a single protocol, enhancing system resilience and expanding lending activities across chains and use cases.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
