User Activity Skyrockets as Morpho Rolls Out Upgrade Suite
User activity on Morpho has surged following the launch of a new upgrade suite that bundles the protocol’s latest lending innovations with refreshed risk tooling and integrations. The rollout is accelerating Morpho’s march into the top tier of DeFi lending venues, as on-chain data records sharp gains in both liquidity and active addresses.
Upgrade suite impact
At the core of the suite is Morpho’s V2 architecture, which introduces fixed-rate, fixed-term loans designed to resemble traditional credit products while remaining fully on-chain. The design supports single-asset, multi-asset, and portfolio collateral, enabling institutions to bring RWAs and structured products into DeFi under more predictable conditions.
Alongside the product changes, Morpho has tightened its compliance and whitelisting flows while preserving an open-source, permissionless base layer, a balance aimed at institutional users wary of regulatory risk.Governance forums have also stepped up activity, with new vault curators, reward tweaks, and migration plans discussed to align incentives around the upgraded stack.
User and liquidity surge
On-chain analytics show Morpho entering what some observers call a “silent explosion” phase, with TVL recently surpassing about 3.8 billion USD, more than 70% higher than at the start of the year. The protocol now ranks among the top three lending platforms by locked value, trailing only incumbents like Aave and Compound.
Daily active wallets interacting with Morpho have crossed roughly 30,000, nearly quadruple year-ago levels as Morpho Blue and curated vaults pull in both retail and professional flow.With Morpho already estimated to route a substantial share of Ethereum’s lending volume, the upgrade suite appears to be cementing its status as a capital-efficient liquidity layer for DeFi credit.
