Onchain Lending Fees Plunge 50% as Morpho Bucks the Trend
AI summary
A 1kx report shows onchain lending markets contracted in 2026, with user-paid fees falling roughly 50% year over year, though Morpho reportedly bucked the trend. New Market Trading CEO Frank Hepworth warned against locking up bitcoin for low fixed yields, citing smart contract and counterparty risks, and the piece references a KelpDAO exploit affecting market leaders. Traders should read the fee collapse as a sign of shrinking DeFi lending demand and weigh the flagged protocol risks before chasing fixed-yield products.
