Morpho was conceived as a universal credit layer. Over four years, real-world usage has validated that ambition with a mostly mobile-first saver base in countries facing high inflation or limited banking services. Partner applications acted as accelerators by making stablecoin deposits simple, transparent, and productive. The user experience rests on self-custody, instant liquidity, and on-chain visibility of positions—reassuring newcomers while convincing seasoned users.
Popular savings have taken shape through tens of thousands of small wallets that, in aggregate, represent meaningful sums. In Argentina, Lemon brought together more than seventy thousand depositors and over sixteen million dollars, with an average ticket around two hundred thirty dollars accessible to modest budgets. Trust Wallet quickly recorded more than fifty million dollars during the first month of its stablecoin yield offering. The integration of the Morpho mini-app into World App, for its part, opened access to over twenty-five million verified accounts with an incentive mechanism dedicated to real humans.
These trajectories share a common property. They convert stablecoins into productive assets without intermediation costs and without surrendering key control. In regions where banking is expensive or distant, the stablecoin becomes both a checking account and a store of value, and the yield offered by Morpho acts as a social lever. In 2025, there were more than a million individual deposits via mainstream apps, mostly under five hundred dollars—evidence that inclusion is not a slogan but a measurable reality.
At the other end of the spectrum, institutional flows have validated Morpho’s role as infrastructure. Coinbase launched USDC loans collateralized by bitcoin, which quickly aggregated several hundred million in collateral and thousands of users. Coinbase’s USDC savings product closes the loop by automatically allocating liquidity to vaults operated by recognized curators. Regulated banks such as Societe Generale FORGE announced markets in regulated stablecoins, while centralized players made large pre-deposits to power payment and yield services.
Macro metrics confirm the ramp-up. Cumulative deposits crossed twelve billion dollars in the summer of 2025 after a little over two billion at the end of 2024. Total value locked stood around six point seven billion dollars over the same period, with active loans of three point five billion and total supply exceeding five billion. The chain breakdown shows a strong concentration on Base above two billion, significant traction on Hyperliquid and Katana, and fast starts on Unichain. RWA markets added nearly two hundred million in productive collateral, with loan-to-value ratios reaching up to seventy-seven percent.
This growth is not linear, but it is resilient. It stems from a modular design in which isolated markets, an adaptive rate curve, and the Public Allocator channel capital toward the most urgent demand. Vaults run by curators like Steakhouse Financial and Gauntlet each exceed a billion in deposits and continuously arbitrate among USDC markets, tokenized bitcoin, yield tokens, and real-world assets. The flywheel engages when rising borrowing demand improves depositor returns, attracts more liquidity, and shortens time-to-capital.
Governance and incentives align participants over the long term. The MORPHO token with a max supply of one billion and roughly three hundred twenty million in circulation as of October 1, 2025 funds targeted adoption programs. The Morpho Olympics reward vault growth, grants stimulate multichain deployments, and allocations accompanied the opening of transferability for historical users. A multi-million-dollar bug bounty reinforces security posture and shared responsibility.
Risk management shows up in operational indicators. The liquidation ratio is under two percent in 2025, with a pre-liquidations mechanism that cushions shocks. Collateral composition remains diversified among majority stablecoins, volatile assets like ether and tokenized bitcoin, yield tokens, and real-world assets. The average health factor sits between one point eight and two, reflecting comfortable safety margins, while the average execution time for liquidations is around fifteen seconds compatible with fast markets.
Multichain expansion is accelerating under an infrastructure-only model. In 2025, Morpho rolled out its components across several Layer-2s and sidechains, with core contracts, oracles, rewards distributors, an adaptive interest curve, bundlers, and pre-liquidations. Grant programs and local specializations make it possible to address niches such as order-book trading, gaming, or SMEs. Native vault bridging already lets users deposit on one chain and lend where yields are higher a milestone on the path to truly cross-chain credit.
Real-world assets open a new adoption cycle. Tokenized European private credit portfolios and credit vaults from financial institutions are appearing as collateral, with growing balances and conservative ratios. Low correlation with crypto markets, stable cash-flow profiles, and corporate treasury appetite for transparent, programmable products suggest several additional billions in 2026 if distribution channels densify.
All told, Morpho forms a durable bridge between micro-savings and institutional capital. Deposits exceed twelve billion dollars, TVL and active loans are measured in billions, and usage spans both households and enterprises. The DeFi mullet strategy is taking hold, with compliant front-end integrations and an auditable on-chain back end. Challenges remain macro resilience, inter-chain fragmentation, and ever-rising security and compliance standards but the trajectory shows that programmable, accessible, and audited credit can scale globally.
