Morpho Surpasses $5 Billion in Outstanding Loans

Morpho's outstanding loans have reached an all-time high of $5 billion, bringing it closer to Aave, the longtime leader in decentralized lending. This metric was reported by crypto analytics firm Messari on September 1.

According to Messari, stablecoins carry almost all of the borrowing, with 95% denominated in stablecoins and USDC accounting for 62% of it.

The growth can be attributed to Morpho's 'DeFi Mullet' model, a crypto-backed loan product launched on Coinbase rails in January 2025. This model has driven around $1.3 billion in outstanding USDC borrowing backed by about $2.5 billion of cbBTC collateral.

Despite the increase, Aave still leads the industry with over $12.7 billion in active loans against Morpho's $4.83 billion and $17.7 billion in total value locked to Morpho's $9.55 billion.