Morpho Surpasses $5B in Deposits on Coinbase's Base Network
Morpho's on-chain credit protocol has reached an inflection point, surpassing $5 billion in deposits on Coinbase's Base network. This milestone represents more than 70% of all active deposits on Base and solidifies its position as the largest deployment network for Morpho, even surpassing Ethereum.
The protocol arrived on Base in May 2024 with total deposits barely reaching $1.8 billion. Since then, the figure has grown exponentially to over $6.8 billion. The team behind Morpho maintained that Base concentrated a sufficient density of users and developers needed to become the backbone of on-chain credit at a global scale.
The quantitative leap came in January 2025 when Coinbase launched its crypto-backed loans on Morpho's infrastructure, dubbed the 'DeFi Mullet'. This model combines fintech distribution with open infrastructure. By May 2025, this product had accumulated over $1.3 billion in active debt in USDC, backed by $2.5 billion in cbBTC deposited in Morpho.
The 'DeFi Mullet' has created a liquidity cycle, attracting more funds and better rates, which in turn attracts new integrators such as Bitso and Deblock. The ecosystem also benefits asset issuers, with approximately 39% of all cbBTC in circulation deposited in Morpho, including 82% on Base.