#OnChainLendingSurge The increase to $20 billion indicates a number of factors

Increase in investment activity . Some traders / investors do take crypto loans from exchanges . This is based on the amount of collateral that they have based on their net on chain assets . A borrower can use this liquidity to open new positions while still locking their own assets in another program such as the simple earn program . This allows the investor to engage in multiple investment activities . Other forms of lending are witnessed in leverage trading whereby an exchange can allocate you an additional leverage amount eg u can get 2 usdt for Every 1 usdt you open a position with in futures . Whenever a loan is taken , a risk is involved . A growing risk appetite is a sure indicator of confidence in the potential returns of an instrument . Trend predictability is often another driver as more and more investors are able to time their entry and or exit . if the appetite for loans remain high, it presents exchanges such as #Binance an opportunity to offer clients more opportunities , eg riskfree earning opportunities for lenders $BTC $BNB $FDUSD