DeFi lending’s next phase will be decided by collateral, not headlines. Aave crossing $1T in cumulative loan originations in February showed how far the sector has moved beyond experiments. Now the sharper signal is what borrowers are using: wrapped BTC markets have more than $7B borrowed, with utilization near 90%, while tokenized real world assets and private credit products are also seeing high demand. That creates a more durable credit market, but concentration remains the fault line. Aave and Morpho often control roughly two thirds of tracked activity. Depth improves liquidity, yet it also concentrates risk when collateral values fall. The recovery is real. Its resilience is still being tested. 📈 Disclaimer: For informational purposes only – not investment advice.