#OnChainLendingSurge On-chain lending surges The on-chain lending market has recently seen a significant surge, with the number of active loans reaching record levels. As of January 7, 2025, active on-chain loans have surpassed $20 billion, breaking the previous record set in December 2021.

This growth is attributed to several factors:

Increased DeFi activity: The DeFi sector has seen a resurgence, with the total value locked (TVL) reaching $71 billion.

Innovative lending protocols: Protocols like Aave’s V3 have contributed significantly to this growth. Aave’s V3 protocol is close to hitting a $6 billion borrowing threshold, leading the sector.

High-risk loans: The total value of high-risk loans, defined as those within 5% of the liquidation threshold, has risen to $55 million.

This surge in on-chain lending indicates increased confidence in DeFi platforms and a shift towards decentralized financial services. However, it also highlights the importance of risk management, especially for high-risk loans approaching liquidation thresholds.#USJoblessClaimsDrop #BinanceAlphaAlert