Base Loan Balance Reaches $2.337 Billion, Concentrated in Morpho

The on-chain loan balance of Base has been recorded at $2.337 billion. Of this, Morpho accounts for $1.876 billion, while Aave V3 holds $357.32 million. A significant portion of the Base loan balance is concentrated in Morpho, indicating a connection between Coinbase users and the on-chain lending market. Coinbase supports users in borrowing USD Coin (USDC) using cryptocurrencies like Bitcoin and Ethereum as collateral through the Morpho protocol. Morpho stated in its August newsletter that total deposits exceeded $14 billion, with Base deposits around $5.7 billion. According to DeFiLlama, the total deposit value of Base is reported to be approximately $3.9 billion. Base is growing thanks to Coinbase's wrapped assets and app distribution network, which facilitates the movement of assets to on-chain lending and borrowing apps. However, Coinbase has pointed out risks such as price volatility of cryptocurrency collateral, security vulnerabilities, and liquidity issues. CryptoBriefing reported that the loan balance in Base's credit market has increased and utilization rates have risen, but further verification is needed.

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