Onchain Lending Fees Plunge 50% as Morpho Bucks the Trend

According to a report by 1kx, onchain lending markets contracted significantly in 2026, with user-paid fees dropping approximately 50% year over year. New Market Trading CEO Frank Hepworth cautions against locking up bitcoin for low fixed yields, citing high smart contract and counterparty risks. Onchain lending markets experienced a sharp contraction in 2026, with user-paid fees falling approximately 50% year over year, according to a new report from crypto investment firm 1kx. However, despite the broader downturn, decentralized lending protocol Morpho demonstrated resilience, recording a modest increase in fees during the third quarter.

Source: Bitcoin.com News