#OnChainLendingSurge
As far as I know, it is directly connected to or driven by Margin Trading. Recently I have been trading a lot making profits on one hand and losing some on the other hand. I decided to try my first maigin trading which includes on-chain borrowing and lending. I was too impetuous to make profits in Margin trading without considering the ups and downs of my target coin, BNB, which was at that time at its highest price, around $725. Soon after I confirmed my Margin trading, the Market Dip began causing me a significant amount of unrealized loss. Nevertheless I believe I am not the only one experiencing the loss as the whole market was dipping down, down and down. That's when the on-chain lending surge appeared indeed. It is as simple as this: I focus on trading in hope of making profits in a short time and you, on the other hand, on gaining passive incomes. Thereby I borrow some to make money by trading and you lend some to gather passive incomes by investing your assets on certain locked products. The current Market Dip created lots of, lots of, more of YOUs and a certain increased numbers of MEs, of course, causing what we are now talking about, the on-chain lending surge.
In short, it indicates a maturing decentralized finance ecosystem, showcasing blockchain's potential to democratize access to financial services, making lending and borrowing more inclusive, efficient, and transparent. However, navigating this space requires a balance between leveraging opportunities and managing risks effectively.
$BNB