On-chain lending has skyrocketed past $20 billion in active loans, surpassing its December 2021 record. This surge reflects growing confidence in decentralized finance (DeFi) and hints at increased liquidity within the crypto market. With more capital circulating, could we see upward pressure on crypto prices?
However, the rapid growth also raises questions. Are we in the early stages of a sustainable bull run, or is this a bubble poised for a market correction? Over-leveraging and potential defaults could lead to instability.
As crypto adoption deepens, the on-chain lending trend could reshape market dynamics. Whether it boosts prices or introduces volatility depends on broader market conditions. What’s your take on this milestone? Bullish or cautious? Let’s discuss!