SparkLend saw its outstanding Ethereum loans increase by 47.1% between July 29 and October 27, 2026. According to WalleDAO, the protocol's loan volume rose from $1.79 billion to $2.64 billion during this period, allowing it to surpass Morpho Blue in total outstanding loans.
The growth was driven by users migrating positions from other platforms, including one group that utilized $190 million in WETH on SparkLend to settle debts on Aave V3 Core and Morpho Blue. Additionally, users leveraged SparkLend for staking and yield farming activities.
Aave experienced a significant decline in USDe loans, which dropped from $544 million to $12 million. Meanwhile, SparkLend reported total supplied assets of $8.51 billion by the end of Q3 2026, representing a 69% quarterly increase, while active borrowing grew by 73% to $2.89 billion.
By mid-September 2026, SparkLend deposits exceeded 600,000 ETH. The platform maintains a specific collateral list including WETH, wstETH, weETH, WBTC, and cbBTC. Its operational model relies on multi-oracle pricing and governance-controlled interest rates rather than automated market curves.
