Base lending loans hit record $2.75 billion as Morpho and Aave lead

What happened

Outstanding loans on Base, Coinbase's Layer 2 network, reached a record $2.75 billion on September 10, according to Artemis. This growth follows increased lending activity in late August, with Morpho and Aave leading the market.

Confirmed

Global impact / market context

This record shows growing demand for borrowing on Base, a cheaper and faster network built on top of Ethereum. More lending could mean more revenue for Coinbase and for protocols like Aave and Morpho, which earn fees from activity.

Analyst inference

Rising lending on Base signals that users are comfortable using newer networks for credit, not just trading. This could attract more developers and investors to Coinbase's ecosystem, potentially increasing competition with other Layer 2 networks like Arbitrum or Optimism.

Analyst inference

What to watch

1. Watch whether lending on Base continues to grow after September 10 or pulls back from the $2.75 billion record, as Artemis will release further data on outstanding loans. Confirmed
2. Investors should consider tracking Aave and Morpho's market share on Base to see if their dominance holds or if competitors gain ground in the growing lending market. Proposed
3. If Base lending keeps rising, it may signal broader crypto credit expansion, which could boost Coinbase's transaction volume and related revenue streams in coming quarters. Analyst inference

Affected assets

• AAVE — Aave
• MORPHO — Morpho

Evidence

• cryptopolitan.com