Active loans across Ethereum-based lending protocols have surpassed $28 billion, according to Token Terminal. The metric tracks assets currently borrowed and accruing interest on platforms like Aave, Compound, and Morpho. Token Terminal said the figure stands about 10x above January 2023 lows. It also said Ethereum keeps a roughly 10x lead over runner-up networks in on-chain lending and borrowing. The update points to a recovery in borrowing activity after earlier market uncertainty reduced leverage.
Token Terminal reported that Ethereum remains the dominant venue for on-chain lending and borrowing. It said active loans across lending platforms on Ethereum recently crossed $28 billion. It added that the figure is up about 10x from the lows seen in January 2023.
Active loans differ from deposits because they track borrowed assets that generate interest income. In that way, the metric points to where lending activity operates at scale. It also reflects where protocols earn sustained interest from active borrowing.
The $28 billion figure drew attention on X among Ethereum supporters. Posts praised the ecosystem for attracting users and offering utility. The discussion focused on lending activity rather than hype cycles.
Active loans on Ethereum-based platforms rose nearly tenfold since January 2023. During that earlier period, uncertainty reduced borrowing activity. Users cut back on leverage, and borrowing demand dropped.
As market conditions improved, Ethereum-based protocols continued to attract both borrowers and lenders. That return widened Ethereum’s gap versus other networks. The text links the surge to improved confidence and more favorable conditions.
Liquidity also supports the lead. Ethereum offers stablecoins and major crypto assets with deep markets. That depth helps borrowers take large positions without major slippage.
The text links Ethereum’s lending to liquidity fragmentation outside its ecosystem. Large borrowing positions need deep markets. Ethereum provides that depth more consistently, which limits migration to smaller networks.
Ethereum also acts as a settlement layer for stablecoin issuers. The text says stablecoin issuers have generated billions in revenue on Ethereum. It also says stablecoin supply on the network reached $180 billion by the fourth quarter of 2025.
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The text adds that institutions, including banks and asset managers, have chosen Ethereum as a settlement layer. It lists features that institutions find attractive, including security, deep liquidity, network effects, programmability, and L2 scaling without sacrificing security. It also mentions regulatory alignment and a future-proof design as key points.
Ethereum also formed a post-quantum team over the weekend, according to the text. On X, Sassal wrote about a possible timeline in which Ethereum becomes quantum-resistant before the centralized financial system does. With that context, one question now hangs over the market: Will Ethereum’s post-quantum push become a key factor in institutional adoption?
Token Terminal says active loans on Ethereum lending protocols have surpassed $28 billion. The metric tracks borrowed assets earning interest on Aave, Compound, and Morpho. Active loans have risen about 10x since January 2023 lows. Ethereum keeps a 10x lead over rival networks as liquidity and stablecoins support large borrowing demand.