Morpho Powers Base's Credit Market Surge
Base's Layer-2 network has reached a significant milestone in its credit markets. The outstanding loans on the platform have grown by 31% year-over-year, reaching approximately $2.3 billion from $1.7 billion.
The most striking aspect of this growth is the increase in utilization rates, which have jumped from 58% to 75%. This means that three out of every four dollars deposited into these markets is actively earning yield through loans.
Morpho, a lending protocol, has been instrumental in driving this growth. Its supplied liquidity on Base has doubled over the past year, rising from $1.0 billion to $2.1 billion. USDC borrowing alone has doubled to $2.0 billion, with a utilization rate of 90%.
The integration of Coinbase's crypto-backed loan product into Morpho markets running on Base was a major catalyst for this growth. This product allows users to borrow USDC against assets like cbBTC, Coinbase's wrapped Bitcoin token.