Ethereum Utilization Falls Below 90% as Lending Rates Drop

On-chain analyst Tom Wan reported on the X platform that Ethereum's (ETH) utilization rate has fallen below 90%, with lending annual percentage yield (APY) dropping to 1.9%. According to Odaily, since the attack on the rsETH LayerZero cross-chain bridge, deposits of wstETH and weETH have decreased by approximately $1.2 billion and $1.76 billion, respectively. As the wstETH/weETH to ETH circular leverage strategy returns to profitability, the market is now focused on whether demand for ETH circular leverage will rebound or if funds will continue to remain cautious or shift towards protocols like Spark and Morpho.