Debt on Morpho Labs’ Arc markets has surged over 13-fold since September 21, reaching $190 million in borrowing against cirBTC by October 13. The rapid expansion highlights intensifying demand for leveraged positions using the wrapped Bitcoin asset as collateral within the DeFi lending protocol. Utilization of the main USDC pool has climbed to 97.4%, leaving approximately $5 million in available liquidity. This near-capacity utilization rate signals significant capital deployment and suggests borrowers are aggressively leveraging cirBTC positions amid tightening credit conditions in the market.