SparkLend’s TVL rises 55% to $7.4B as protocol doubles down on Ethereum

SparkLend, the lending arm of the Spark ecosystem, has seen its total market size climb 55% since the start of the year to reach $7.39 billion in September. The protocol is fully deprecating its Gnosis Chain deployment as of September 14, 2026. Any outstanding loans on that chain become eligible for liquidation after the cutoff.

The numbers behind the growth

SparkLend’s $7.39 billion total market size figure represents the combined value of assets supplied to the protocol. The actual TVL, as tracked by DefiLlama, sits at approximately $4.96 billion, with roughly $2.436 billion in active loans outstanding.

At the close of May 2026, TVL stood at roughly $3.6 billion, meaning the protocol added over $1.3 billion in locked value in just a few months over the summer.

For context, that $4.96 billion TVL figure makes SparkLend the third-largest lending protocol tracked by DefiLlama. The protocol launched on Ethereum in May 2023 and within months briefly became the second-largest DeFi money market by TVL.

Why Gnosis had to go

The decision to shut down SparkLend on Gnosis Chain came down to low usage and cost inefficiencies. Nearly all of the protocol’s activity has been concentrated on Ethereum. Borrowers who don’t migrate or repay before the September 14, 2026 deadline face their positions being liquidated.

Ethereum-first strategy and what it signals

SparkLend operates as a non-custodial protocol with unique rate mechanisms that differentiate it from competitors. Its lending portfolio focuses on blue-chip assets including ETH, stablecoins such as USDS and USDT, and wrapped Bitcoin products. SparkLend is linked to the broader Sky (formerly MakerDAO) protocol, which acts as an on-chain capital allocator providing integration with Sky’s stablecoin reserves and liquidity layer.