Ethereum powers 90% of crypto lending revenue
Layer 2 solutions boost efficiency and scalability
DeFi lending continues to favor Ethereum-based platforms
According to David Walsh from the Ethereum Foundation, Ethereum and its Layer 2 networks now account for nearly 90% of all crypto lending revenue in the blockchain space. This dominance shows how deeply the Ethereum ecosystem has rooted itself in decentralized finance (DeFi), especially in lending protocols.
Layer 2 solutions like Arbitrum, Optimism, and Base have played a major role in this growth. By offering faster and cheaper transactions, they’ve made lending and borrowing more accessible for users and more profitable for platforms.
Ethereum’s position as the preferred chain for DeFi lending isn’t new. Platforms like Aave, Compound, and MakerDAO have long operated primarily on Ethereum. But what’s notable now is how Ethereum’s Layer 2s are supercharging adoption, handling a growing portion of lending activity without compromising on speed or security.
The Rise of Layer 2 Lending Platforms
Layer 2 networks are designed to scale Ethereum by moving activity off the main chain while still relying on its security. This has led to massive improvements in transaction speed and fee reduction, both critical for lending platforms.
As users shift to Layer 2 environments, protocols that integrate with these networks are seeing higher activity and more revenue. This includes newer platforms launching directly on Layer 2, as well as existing ones expanding their ecosystems beyond Ethereum Mainnet.
This surge reflects both user confidence and infrastructure maturity. With better user experience and faster transaction speeds, Layer 2s are enabling Ethereum to maintain its dominance in the lending space — even as competing chains try to catch up.
INSIGHT: Nearly 90% of crypto lending revenue now comes from Ethereum and its Layer 2 network, per Ethereum Foundation's David Walsh. pic.twitter.com/wwDbLvjRHg
— Cointelegraph (@Cointelegraph) December 16, 2025
What This Means for the Future of DeFi Lending
The data shared by David Walsh highlights a broader trend in DeFi: Ethereum isn’t just maintaining its lead; it’s expanding it through scalability. With nearly 90% of crypto lending revenue now tied to Ethereum and its scaling solutions, developers and investors are likely to continue building within this ecosystem.
As more assets move into DeFi and more users explore yield opportunities, Ethereum’s stronghold on the lending market could grow even stronger — especially if upcoming upgrades like Danksharding continue to improve performance and reduce fees.
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