USDC and cbBTC Dominate Morpho’s Deposit Base
According to ChainCatcher, on-chain data shows that assets associated with Coinbase have become the most important source of traffic for the decentralized lending protocol Morpho. USDC and cbBTC together account for 53% of all deposits across the Morpho platform, placing these two assets at the center of the protocol’s current deposit structure.
The data also shows a high concentration of Coinbase-linked users within those deposits. Coinbase users contributed 83% of cbBTC deposits on Morpho and 59% of USDC deposits. In other words, a large share of the platform’s most important deposited assets is directly connected to Coinbase users and Coinbase’s asset ecosystem.
Borrowing Activity Is Also Closely Tied to Coinbase
The borrowing side of Morpho shows a similar dependence on the Coinbase ecosystem. Of the $2.3 billion in USDC borrowing on the platform, about $1.2 billion comes from Coinbase users who use cbBTC as collateral. That figure represents more than half of Morpho’s total USDC borrowing, showing that Coinbase users are not only supplying assets to the protocol but are also creating substantial borrowing demand.
Analysts cited in the source said the two sides have formed a deeply symbiotic relationship. Coinbase plays the role of user acquisition and asset distribution, while Morpho acts as a yield layer that brings those assets into on-chain activity. The case shows that, in the crypto industry, the moat created by distribution channels can be stronger than technology itself, especially when user access and asset flows become central to protocol growth.