Aave's Arc Market Sees $125M USDC Dump, But Borrowing Demand Lags

Aave's Arc Market Attracts $125M in USDC, But 99.5% Remains Unused

The Aave lending market on the Arc network has seen a significant influx of USDC deposits, totaling nearly $125 million, but borrowing demand remains weak.

According to data from September 18, around $124.8 million in USDC was supplied by users to Aave V4's Arc market, representing a sharp increase from the previous day's $75.8 million and more than five times the excess reserves on September 16.

Despite this surge, borrowers have only utilized a mere 0.46% of the available USDC, leaving nearly all the deposited funds unused. The borrowing rate currently stands at around 0.02%, while the supply return remains at 0.00%.