Morpho’s reported total deposits and total value locked surpassed $14 billion in August 2026, reaching approximately $14.15 billion by early September and setting an all-time high for the decentralized lending protocol. Morpho said the milestone represented about 25% of crypto-collateralized lending, while founder Paul Frambot said on August 22 that $14 billion was about 1.4% of the path to the first $1 trillion. Growth has been driven by Morpho Midnight, a non-custodial fixed-rate lending protocol launched on July 21, Base, and Robinhood Earn. A Morpho chart showed BTC as the largest deposited asset at about $4.7 billion, followed by USDC at $3.5 billion and other stablecoins at $2.1 billion. Base deposits exceeded $5 billion, while outstanding loans approached $5 billion in early September, implying utilization of roughly 35%. Morpho began as an optimization layer for Aave and Compound and evolved into standalone infrastructure with its own markets and vaults. It raised $175 million in June 2026 at a valuation of up to $2 billion, although markets and curators built on the protocol have drawn scrutiny over risk.