Crypto Lending TVL Surpasses $56 Billion in June 2025, 35% of DeFi Holdings

In June 2025, the total value locked (TVL) in crypto lending protocols exceeded $56 billion, making up over 35% of the DeFi TVL [1]. The lending protocols operate via smart contracts to automate lending, borrowing, and liquidation, removing the need for central authorities [1]. These platforms have matured into essential financial tools, with over 526 active protocols and at least 170 holding TVL above $1 million [1].

The top lending protocols for 2025 include Aave, Morpho, Spark, Kamino, Compound, Venus, Euler, Fluid, Suilend, and Save Finance. Aave, with nearly $43.8 billion in TVL, remains the dominant player, supporting a broad range of crypto assets and Real-World Assets (RWA) through its Horizon initiative [1]. Morpho, with $6.3 billion in TVL, offers optimized peer-to-peer lending, while Spark, part of the Sky Ecosystem, focuses on stablecoin-based savings and lending [1]. Kamino leads on Solana with over $3.6 billion in TVL and supports Solana-native assets with high liquidation thresholds [1].

Compound, one of the earliest protocols, continues to support multiple EVM chains and features a cToken model for interest accrual [1]. Venus, on BNB Chain, allows users to mint a stablecoin (VAI) while offering competitive rates [1]. Euler introduces specialized lending vaults with flexible risk parameters, while Fluid improves capital efficiency by allowing assets to earn trading fees [1]. Suilend and Save Finance lead in their respective blockchains, with the latter offering no loan repayment deadlines [1].

Despite the growth, users must remain cautious of risks such as liquidation, smart contract vulnerabilities, oracle errors, interest rate volatility, and evolving regulatory environments [1]. The protocols highlighted have undergone extensive security audits and maintain active bug bounty programs, yet the decentralized nature of DeFi introduces inherent uncertainties [1].

The lending landscape is evolving with innovations like tokenized securities, optimized yield strategies, and cross-chain integrations, reflecting the sector’s potential for expansion [1]. However, users are advised to conduct their own due diligence, understand the risks involved, and select protocols based on their individual goals and risk tolerance [1].

Source: [1] Top 10 Crypto Lending Protocols for 2025 (https://www.coingecko.com/learn/top-crypto-lending-protocols)