Lending on Ethereum continues to rise, reaching new all-time highs, highlighting a return of confidence in the network.
Return of Lending on Ethereum
Lending on Ethereum has reached a new all-time high. The total volume of active loans ranges from $22.6 billion to over $24 billion, depending on various metrics and protocols. Data from TokenTerminal indicates that the trend of expanding lending resumed since April, with around $2 billion added in active loans in June.
Ethereum Remains DeFi Lending Leader
Overall lending has locked in $55.45 billion when accounting for collateral deposits. Ethereum lending is also at an all-time high, with over $35.29 billion in collateral locked. Another chain expanding its lending activity is Base, with over $2 billion in locked collateral.
ETH Liquidation Levels Rise Amid Increased Confidence
With more active lending, the ETH market carries $1 billion in liquidable loans. This time, borrowers remain relatively conservative, with liquidity accrued at the $1,600 level or lower. This means that even if ETH slides by 20%, lenders will see only $4.2 million in liquidated loans. However, the total value of locked ETH has decreased from over $100 billion in November 2021 to approximately $62 billion in July 2025.
The growth in lending underscores the ongoing confidence in ETH and its protocols. The impact of widely accepted stablecoins and new tokens, as well as further developments in DeFi, is expected to continue.
