Crypto
ETH Lending Rates Skyrocket as Borrowing Demand Surges
The Ethereum lending market is thriving, offering borrowers and lenders alike opportunities to earn interest on their ETH holdings.
In DeFi, borrowing against ETH costs between 3.8% and 9.5% per year in markets with at least $200M of ETH deposited, as observed on September 26, 2026. The cheapest option is currently Aave v3 (Arbitrum), with a variable rate of 3.80%.
Lending out ETH, however, pays a more modest return, ranging from 0.3% to 2.7% per year in the large pools. Aave v3 (Ethereum) offers the highest interest rate at 1.4%, while lending through Euler Monad yields 2.67%. Traders borrow ETH to short it or loop staked ETH, driving up demand and interest rates.