In the fast-paced world of decentralized finance (DeFi), where users can borrow and lend crypto assets without traditional banks, a new player is making waves. Fluid, a innovative lending protocol built on Ethereum, has just hit a major milestone: it's now the third biggest lending market by active loans. This comes from a recent chart shared by DeFi expert DMH on X (view the original post), highlighting the top 10 projects over the past year.

Breaking Down the Chart

The stacked bar graph shows average weekly active loans for the last 365 days, with data up to October 2025. At the top sits Aave, a veteran in the space, boasting $23.6 billion in active loans. Right behind is Morpho at $3.4 billion, and then Fluid at $2.5 billion. Others like Spark Finance ($2.4B), Maple Finance ($2.4B), and more established names such as Compound ($1.2B) follow.

What's striking is Fluid's rapid ascent. Launched as part of the Instadapp ecosystem, Fluid optimizes liquidity by allowing users to lend and borrow with better rates through advanced algorithms. Active loans refer to the total value of outstanding borrowings at any given time – a key metric for gauging a protocol's real-world usage and health.

Why This Matters for DeFi Users

For everyday crypto holders, this shift signals more options in the lending space. If you're into meme tokens – those fun, community-driven coins like Dogecoin or newer ones on Solana – lending protocols like Fluid can be a game-changer. Traders often borrow stablecoins against their meme holdings to amplify positions without selling, a strategy called leverage trading. With Fluid's growth, you might find tighter spreads (the difference between borrowing and lending rates) and more efficient capital use.

DMH teases "many developments are underway," which could include integrations with popular meme ecosystems or new features like flash loans – instant, uncollateralized borrows used for arbitrage. This buzz has sparked excitement in the replies, with users like Ignas from DeFi congratulating the team and others predicting even higher rankings soon.

Fluid's Edge in a Competitive Market

What sets Fluid apart? It's all about efficiency. Unlike older protocols, Fluid uses a "liquidity layer" that aggregates funds across pools for optimal yields. This means lenders earn more, and borrowers pay less – a win-win in DeFi's competitive landscape. As meme token volatility spikes, having reliable lending options helps stabilize portfolios.

If you're new to this, DeFi lending works like this: You deposit crypto as collateral, borrow another asset, and pay interest. Over-collateralization (e.g., depositing $150 worth to borrow $100) prevents defaults. Protocols like Fluid are audited and battle-tested, reducing risks compared to centralized exchanges.

Looking Ahead

With Fluid nipping at the heels of giants like Aave and Morpho, the DeFi lending sector is heating up. For meme token fans, this could mean easier access to leverage during pumps or hedging tools during dumps. Keep an eye on updates from the Fluid team (check out Instadapp) – the next big thing might just boost your favorite meme's liquidity.

Whether you're a seasoned DeFi practitioner or just dipping your toes into meme tokens, Fluid's rise is a reminder of how innovation drives blockchain forward. Stay tuned for more insights on emerging protocols that could shape the future of crypto finance.