Not to throw a wrench in your little fantasy but there are a lot of real sponges in the ocean. A sponge can only absorb so much water and the ocean is really, really big. Fill a bathtub and throw in a sponge. The sponge will absorb so much. The ocean is much bigger, and denser.
@SW-User yet in that one episode where spongebob stays at the krusty krab and squidward hallucinates him being in the bathtub with him and he goes under and he's in his squid form. How does he look like that but he's underwater all the time?