SparkLend grows 47% in three months as big borrowers shift capital, WalleDAO finds

Platform transfers, investment borrowing, and a collapse in Aave's USDe loans reshaped Ethereum lending between July and October 2026

Wed 4 Nov 2026 · 08:37 EST · 3 min read

In DeFi

SparkLend’s outstanding loans on Ethereum rose 47.1% in roughly three months, according to an analysis by WalleDAO dated November 4, 2026.

The lending protocol went from $1.79 billion in loans on July 29, 2026, to $2.64 billion by October 27, 2026. Its two biggest rivals also grew over the same period, just a lot more slowly.

WalleDAO traced the growth to three forces: borrowers moving between platforms, people borrowing to put capital to work, and the unwinding of USDe loans. That last one hit Aave especially hard.

The scoreboard

Here is how the three major Ethereum lending venues stacked up over the July 29 to October 27 window, per WalleDAO’s data.

SparkLend: loans grew from $1.79 billion to $2.64 billion, a 47.1% increase.

Morpho Blue: loans grew from $1.93 billion to $2.48 billion, a 29% increase.

Aave V3 Core: loans grew from $8.71 billion to $9.11 billion, a 4.5% gain.

A few months ago, SparkLend was the smallest of the three by this measure. It has now edged past Morpho Blue on outstanding Ethereum loans.

Aave V3 Core remains the heavyweight by a wide margin. Its book is still more than three times the size of SparkLend’s.

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Where the money came from

A meaningful chunk of SparkLend’s gains did not come from brand-new borrowing demand. It came from borrowers relocating.

WalleDAO identified one borrower group that used approximately $190 million in WETH on SparkLend to repay positions it held on Aave V3 Core and Morpho Blue.

Other borrowers, according to WalleDAO, took out fresh loans on SparkLend to fund staking or yield farming.

Then there is the USDe story. Aave’s USDe loans fell from $544 million to $12 million over the period.

A bigger quarter than the loan book suggests

The broader quarterly figures for SparkLend show similar momentum.

Total supplied assets on the platform reached $8.51 billion by the end of Q3 2026, up from $5.03 billion at the end of Q2. That works out to 69% quarterly growth.

Active borrowing reached about $2.89 billion, a 73% increase quarter-over-quarter. That figure covers a broader measure than the $2.64 billion Ethereum loan number in WalleDAO’s three-month comparison, so the two should not be read as the same metric.

ETH deposits were a notable driver. SparkLend surpassed 600,000 ETH in deposits by mid-September 2026.

The conservative playbook

SparkLend launched in May 2023 as part of the Spark ecosystem.

The platform accepts only a short list of high-quality collateral: WETH, wstETH, weETH, WBTC, and cbBTC.

It also uses multi-oracle pricing, meaning it pulls asset prices from more than one data source.

Interest rates on SparkLend are controlled through governance rather than left entirely to automated market curves.

The research describes this design as what allowed SparkLend to thrive while other lending protocols dealt with tougher conditions.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.