In the fast-paced world of decentralized finance (DeFi), money markets form the backbone of capital flow, enabling users to lend and borrow crypto assets seamlessly. Recently, Carlos Gonzalez Campo, a Research Analyst at Blockworks Research, dropped a detailed thread on X breaking down the current lending landscape. With over $120 billion in deposits and nearly $50 billion in outstanding loans, this sector is booming. Let's unpack the key takeaways from his analysis, which spotlights the top eight money markets and their competitive edges.

Aave's Unmatched Dominance in DeFi Lending

Aave stands out as the undisputed leader in the DeFi lending space. According to the thread, Aave boasts $65 billion in deposits and $27 billion in outstanding loans. To put that into perspective, Aave's loan volume is 116% higher than the combined borrows from the next seven protocols. This liquidity moat makes Aave a go-to for large-scale borrowers who need stable rates without sudden spikes.

What does this mean for everyday blockchain enthusiasts or meme token traders? High liquidity means you can borrow against your holdings—like using stablecoins to leverage positions in volatile meme tokens—without worrying about rate volatility derailing your strategy.

Rising Stars: Morpho, SparkLend, and Kamino

Trailing Aave, Morpho secures second place with $3.3 billion in loans, thanks to its curated lending vaults and a massive $1.7 billion inflow from Coinbase's cbBTC integration this year. SparkLend follows at $2.3 billion, while Kamino, focused on Solana, holds $1.8 billion—dominating SOL-related markets.

These protocols are innovating rapidly. For instance, Morpho's vaults allow for tailored lending pools, which could be a game-changer for meme token communities looking to create custom liquidity for their assets.

Growth Leaders: Euler v2 and Maple's Rapid Expansion

Year-to-date, Euler v2 and Maple have seen the most explosive growth in deposits and borrows. However, in Q3 2025, Aave and Morpho are leading in new loan originations. Euler's surge comes from its Usual Stability Loan market, which has pulled in $733 million in deposits for optimized looping strategies at a fixed 5% borrow rate.

Maple, on the other hand, owes much of its success to syrupUSDC, representing 66% of its assets under management ($2.1 billion) and delivering an impressive average APY of 8.8%. If you're into yield farming with stablecoins—a common tactic in meme token ecosystems—these high-yield options could supercharge your returns.

Asset Breakdown: Stablecoins and ETH LSTs Lead the Way

Diving into asset categories, stablecoins top the charts with $27.4 billion in deposits, closely followed by Ethereum Liquid Staking Tokens (LSTs) at $27.2 billion. Aave dominates most verticals, except for SOL markets where Kamino reigns supreme.

On the borrowing side, stablecoins again lead with $21.5 billion in loans. This trend highlights the preference for stable assets in hedging or leveraging positions, which is crucial for meme token traders navigating pump-and-dump cycles.

Why Aave Wins: Liquidity and Predictable Rates

The secret to Aave's success? Deep liquidity that keeps borrow rates low and predictable, especially for USDC. Over time, Aave has offered better rates than competitors, attracting whales and institutional players.

Lately, stable-denominated borrows have skyrocketed due to demand for looping Pendle's PT-sUSDe against USDC. PT collateral has grown 600% YTD, outpacing other types. For meme token holders, this means more efficient ways to borrow against holdings to chase the next big meme coin without liquidations.

Protocol-Specific Insights: Deposit and Loan Compositions

Looking at individual protocols:

• Aave, SparkLend, Kamino, and Fluid have over 50% of deposits in ETH or SOL (including LSTs).
• Morpho, Euler, and Maple lean heavily on stablecoins.

For loans:

• Kamino and SparkLend focus on ETH/SOL-denominated debt for LST looping.
• Morpho, Euler v2, and Maple have 70%+ in stablecoin loans.

This diversity shows how different protocols cater to varied strategies, from high-risk meme token leverage to stable yield generation.

Chain Dominance and Future Outlook

Aave rules Ethereum L1, accounting for 85% of global borrows. Kamino owns Solana with $1.8 billion in loans, while Morpho edges out Aave on Base with $850 million.

As DeFi evolves, these insights are gold for blockchain practitioners. Whether you're building meme token projects or trading them, understanding lending dynamics can help optimize capital efficiency and reduce risks.

For a deeper dive, including net interest margins and valuations, check out the full report on Blockworks Research. And don't miss the original thread on X for all the visuals and stats.

Stay tuned to Meme Insider for more on how DeFi trends intersect with the wild world of meme tokens!