Ethereum currently leads the global on-chain lending market with roughly $28 billion in active outstanding loans across decentralized lending protocols, based on Token Terminal data. Sector analysts note that this represents an order-of-magnitude lead over competing networks, with an approximate 10× gap versus the next group of chains tracking lending activity.

“Active loans” refers to the value of borrower balances outstanding—that is, capital that has been borrowed and is accruing interest. The metric differs from total deposits or TVL because it reflects borrowing demand rather than simply available liquidity. For analysts, this distinction matters: lending activity is considered a stronger proxy for ecosystem capital efficiency than deposited liquidity alone.

Ethereum’s dominance is supported by the scale and maturity of its lending protocols. Platforms such as Aave, Compound, Morpho, Spark, MakerDAO’s DAI credit system, and other long-tail lenders support collateralized borrowing, leveraged strategies, and stablecoin credit flows. MakerDAO is also a key pillar due to the importance of DAI minting as a collateralized borrowing mechanism.

Market reporting throughout 2024–2025 shows that DeFi lending volumes have not only recovered from earlier downturns but have surpassed the “DeFi Summer” highs in both TVL and credit utilization metrics. Token Terminal data from mid-2025 placed active loans in the $22–26 billion range, with growth continuing through late 2025 into early 2026. DeFi deposit TVL across lending protocols also surpassed $55 billion during the same period.

Other networks, including Solana, Base, BNB Chain, Arbitrum, and Avalanche, have active lending ecosystems via protocols such as Solend, Venus, Radiant, Benqi, and Seamless, but remain considerably smaller in aggregate. The gap underscores Ethereum’s position as the leading credit layer for on-chain finance.

Lending demand functions as an ecosystem maturity signal. Borrowing drives stablecoin utilization, supports hedging and leverage strategies, and enables capital efficiency for both retail and institutional actors. The rise of on-chain lending on Ethereum also corresponds with concurrent growth in tokenized treasuries, ETH staking markets, structured products, and stablecoin circulation; all of which reinforce credit demand.

Data caveats apply. Token Terminal has not issued a press release on the $28 billion figure; visibility comes from platform dashboards and third-party reporting. Chain-by-chain comparisons fluctuate due to liquidations, interest rate dynamics, and market conditions. Attribution should therefore remain anchored to Token Terminal’s analytics rather than to Ethereum Foundation reporting.

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