cirBTC Borrowing on Morpho Tops $190 Million as Arc Liquidity Tightens

Borrowing of cirBTC on Morpho has topped $190 million as Arc liquidity tightens, with roughly 97.4% of supplied USDC borrowed in the main market versus just 8.1% when Circle Mint opened access on Sept. 21. The near-total utilization of the USDC pool signals intense demand for leverage on cirBTC but also raises the risk of elevated borrow rates and withdrawal constraints. Traders should watch utilization and rate spikes for signs of stress or a liquidity crunch in the Arc/Morpho ecosystem.