SparkLend Moves Past Morpho Blue as Ethereum Loans Rise 47%

SparkLend moved ahead of Morpho Blue in outstanding Ethereum lending after its loan balance rose 47.1% from July 29 to Oct. 27, changing the ranking between the two protocols.

SparkLend’s Ethereum loan balance stood at $1.79 billion on July 29 and $2.64 billion on Oct. 27. Morpho Blue’s balance increased from $1.93 billion to $2.48 billion, a 29% rise. Aave V3 Core grew 4.5%, from $8.71 billion to $9.11 billion, and remained the largest of the three. The comparison tracks outstanding loans on Ethereum at two dates, rather than deposits or activity across all networks.

One borrower group used about $190 million in Wrapped Ether (WETH) through SparkLend to repay positions on Aave V3 Core and Morpho Blue. Other borrowers took new loans on SparkLend to fund staking or yield farming. These activities accompanied SparkLend’s balance growth during the period.

Aave’s USDe loans also fell during the comparison, from $544 million to $12 million.

Quarterly figures cover a wider measure of SparkLend activity. Total supplied assets stood at $8.51 billion at the close of the third quarter, up from $5.03 billion at the end of the second quarter. Active borrowing reached about $2.89 billion, a 73% quarterly increase. That borrowing measure covers more than the Ethereum-only loan balance in the three-month comparison, so the figures describe different scopes. TokenPost’s earlier coverage of SparkLend’s third-quarter borrowing and revenue also covered the quarter’s borrowing growth.

SparkLend joined the Spark ecosystem when it debuted in May 2023. It accepts five collateral assets, including WETH, and uses prices from multiple oracles. Governance sets its interest rates.