Update
Onchain Lending Fees Plunge 50% as Morpho Demonstrates Resilience
According to a report by 1kx, onchain lending markets experienced a significant year-over-year decline in user-paid fees, dropping approximately 50% in 2026. However, decentralized lending protocol Morpho showed resilience, recording a modest increase in fees during the third quarter. The report attributes the sector's decline to Aave, the leading decentralized lending protocol, which suffered a significant decline in deposits following the KelpDAO exploit in the second quarter of 2026. Despite the broader downturn, Morpho demonstrated stability, with fees declining only 46% in the third quarter compared to the same period in 2025.