Ethereum and its liquid staking tokens now account for 67% of all DeFi borrowing activity, according to Messari data. Total outstanding onchain lending stands at approximately $23 billion, down 50% from the $46 billion peaks reached in 2025. This dominance is driven notably by the growing use of liquid staking tokens like Lido’s stETH, which allow users to earn staking yields while using their assets as collateral. The Aave lending protocol remains the dominant platform for these operations. Ethereum’s majority position in a $23 billion lending market makes it the backbone of decentralized credit.
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