Morpho Borrowers Fuel Protocol's Rapid Growth

Morpho's rapid growth in the DeFi lending space has been making waves in recent months. According to Token Terminal data, Morpho borrowers paid approximately $170 million in interest over the past year, a significant increase from previous years.

While this may seem like a major achievement for Morpho, the actual DAO revenue is much lower than expected. Assuming a 10% take rate, Morpho's DAO would have captured around $17 million in revenue, which is a far cry from its valuation of approximately $1.7 billion.

In comparison, Aave generated close to $140 million in annual revenue directly, with a similar market cap. This raises questions about Morpho's valuation and whether it is sustainable in the long term.