Spark Finance leads lending market with 190% loan growth to $3B

Spark, the lending protocol born out of the Sky ecosystem (the entity formerly known as MakerDAO), has quietly become the fastest-growing lender in DeFi. Its active loans surged roughly 190% over the past 180 days to approximately $2.9 billion, a pace that no other top-10 lending protocol matched during the same stretch. What makes the growth especially notable: the broader DeFi lending market contracted by about 30% over the same period. The numbers behind the surge SparkLend’s share of outstanding loans among major venues jumped to 10.4% in Q2 2026, up from 4.3% in Q1. Ethereum borrowing on the platform increased 247% since March 2026. The biggest driver was USDS borrowing, which ballooned from $188 million to $917 million. That single stablecoin accounted for nearly half of the total loan increase. Total value locked in SparkLend hit roughly $5 billion, while deposits rose to $5.03 billion in Q2, a 69% jump quarter-over-quarter. The total market size of supplied assets on Ethereum reached $7.39 billion as of mid-September 2026. On the revenue side, SparkLend posted net income of around $3.3 million for Q2, with distribution rewards tied to USDS savings products contributing $4.8...