Stablecoin deposits in DeFi rise 560.8% in three years as lending pools log outflows
Stablecoin deposits in decentralized finance (DeFi) have reached $24 billion, a 560.8% increase over three years, according to Token Terminal data released on October 25, 2026. But the long-term expansion contrasts with a shorter-term retreat: separate lending-pool data show net withdrawals over the past month.
Summary
Key takeaways
- USDC accounts for 38.2% of DeFi stablecoin deposits.
- DeFi holds about 8% of the overall stablecoin market.
- Monthly net withdrawals totaled approximately $99.8 million after interest.
Stablecoin deposits in DeFi grow as holders seek yield
The three-year rise reflects growing use of DeFi protocols to earn returns on stablecoin holdings. Rather than keeping these assets solely as a place to hold funds between trades, users are increasingly supplying them to yield-generating protocols.
That activity remains concentrated in a few assets. Although Token Terminal’s dataset covers 193 digital assets, USDC, USDT and USDe together represent roughly two-thirds of stablecoin deposits in DeFi.
USDC leads with about $9.2 billion in deposits
USDC holds the largest share at 38.2%, equivalent to approximately $9.2 billion. Its deposited value is nearly twice that of second-place USDT.
USDT accounts for 20.3%, or about $4.9 billion. USDe ranks third, with a 9.0% share worth around $2.2 billion, according to Token Terminal’s figures.
The distribution shows a clear lead for USDC among assets deployed into these protocols, even within a dataset spanning many more digital assets.
A small share of the market, with monthly outflows
Stablecoin deposits in DeFi represent about 8% of the approximately $298.4 billion stablecoin market. Roughly 92% of that market therefore sits outside DeFi deposits.
A separate measure from DeFiStar.io puts stablecoin lending pools’ total value locked (TVL) at approximately $25.68 billion in a recent 24-hour snapshot. That figure measures lending-pool TVL, rather than Token Terminal’s reported deposit total.
DeFiStar.io’s monthly flow figures show a different direction from the three-year growth trend. After accounting for interest, lending pools recorded approximately $99.8 million in net withdrawals over the past month.
Lending platforms connect deposits with collateralized borrowing
Major protocols holding these deposits include Aave V3, Morpho, Sky Protocol and Spark. Their lending model connects stablecoin suppliers with borrowers taking loans against collateral.
Depositors face risks from flaws in smart contracts, failures at the protocol level and stablecoins losing their peg. The returns come from lending activity: borrowers pay interest, which flows back to those supplying the capital.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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