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Ethereum dominates DeFi lending with 67% market share despite overall lending volume halving since 2025

Protocol Fundamentals
06 Aug 2026
Crypto Briefing
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Bullish
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Ethereum now accounts for 67% of all decentralized finance (DeFi) borrowing onchain, even as total lending volumes dropped from $46 billion in 2025 to about $23 billion by mid-2026. This dominance is boosted by the use of liquid staking tokens like stETH, which allow borrowers to earn staking yields while using their assets as collateral. Aave remains the leading protocol facilitating most of this borrowing activity. Ethereum's growing share highlights its central role in DeFi credit markets, with more staked and tokenized ETH enhancing liquidity and collateral quality.

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