Blockchain analytics firm Token Terminal revealed on Jan. 25 that the total value of outstanding loans on Ethereum has reached approximately $28 billion, underscoring the network’s overwhelming lead in decentralized finance (DeFi) lending.
Ethereum remains the main hub for onchain lending, with around $28B in active loans?
That is roughly 10x more than any other network. pic.twitter.com/DguNljvdZz
— CryptoBusy (@CryptoBusy) January 26, 2026
According to the data, Ethereum’s lending volume is now roughly 10 times larger than all other blockchain networks combined, highlighting its position as the backbone of the global DeFi credit market.
Leading DeFi lending protocol Aave reported total outstanding debt of $28.9 billion as of August, with Ethereum’s V3 market alone accounting for $24.13 billion in borrowed assets.
Institutional Adoption and Layer-2 Networks Fuel Growth
Ethereum’s dominance is being reinforced by the rapid expansion of Layer-2 (L2) scaling solutions, including Arbitrum, Base, and Optimism, which have dramatically reduced transaction costs and improved execution speed.
These improvements have enabled the high-throughput, low-latency lending activity required by institutional participants. As the market expands, interest in Ethereum investment strategies continues to rise.
By November 2025, Ethereum’s total value locked (TVL) surpassed $70 billion, reflecting growing confidence from both retail and professional investors.
Another major catalyst is the rise of real-world asset (RWA) tokenization. Ethereum-based RWA markets exceeded $30 billion by Q3 2025, driven largely by demand for yield-generating instruments such as tokenized U.S. Treasuries and private credit.
Tokenized U.S. Treasuries reached $7.3 billion, while private credit climbed to $17 billion, signaling strong institutional appetite for blockchain-native fixed-income products.
Record Network Activity Signals Healthy Market Conditions
Ethereum network usage continues to accelerate, reaching historic levels entering 2026. On Dec. 29, 2025, the blockchain recorded a new daily high of 2.23 million transactions, reflecting surging on-chain activity.
Major protocols such as Aave now account for a significant share of DeFi’s total lending capacity. By January 2026, Aave V3 on Ethereum held nearly $46 billion in assets, cementing its dominant role within the ecosystem.
Despite increased volatility across crypto markets, utilization rates remain healthy and liquidation risks are relatively contained, which is a sign of improving market resilience.
Traditional institutions are also beginning to integrate DeFi lending. Notably, Bhutan’s sovereign investment fund has reportedly used Aave, marking a symbolic step toward mainstream adoption of decentralized credit markets.
With Layer-2 infrastructure maturing and tokenized assets gaining traction, Ethereum appears firmly positioned as the primary settlement layer for on-chain finance.
